Thank you for requesting this Product Disclosure Statement from Funds Focus. Fee Reduction As highlighted within our offers page, whilst most managed funds typically pay an entry fee of up to 5%. Applications lodged through Wealth Focus will receive a rebate of up to 5% directly into your fund, providing you with more money in your fund. How to Apply Please have a read through the PDS and if you would like to invest the application pages can generally be found towards the back of the document. You will only need to send the application section back with a cheque/direct debit payable direct to the investment company (not ourselves). You should take note of any minimum investment amounts that may apply and proof of ID that is now required for the new Anti-Money Laundering regulations. Then mail the completed application directly to us. We will then check to ensure your form is completed correctly before forwarding your document on to the investment provider on your behalf. Wealth Focus Pty Ltd Reply Paid 760 Manly NSW 1655 Please note that we are unable to track applications mailed directly to the product provider and therefore cannot guarantee that your discounts have been applied in these instances. Should you wish to take advantage of our free annual valuation and tax report for all your investments you should complete our broker nomination form for The Wealth Focus Investment Service. Regards Sulieman Ravell Managing Director Wealth Focus Pty Ltd ABN 87 123 556 730 AFSL: 314872 56 The Corso, Manly, NSW 2095 Postal Address: PO Box 760, Manly, NSW 1655 Requirements for verifying your identity under the new Anti Money Laundering (AML)/Counter Terrorism Financing (CTF) Act The AML/CTF Act came into effect on the 12th December 2007. All financial planning and fund management companies are now required to collect, verify and store specific customer information before arranging investment services for a client. It is designed to prevent, detect and protect Australian business from money laundering and the financing of terrorist activities. As such, we request that all new applications are sent with ‘certified documentation’. We have found that the easiest way to provide the required documentation is to have a copy of your driving licence or passport certified by Australia Post or a Justice of the Peace (please see following page for a full list of individuals that can certify documentation). Once this has been completed, under the current requirements we will not require you to send identification again. What you need to do You will need to enclose a certified piece of photographic evidence or one piece of primary non-photographic evidence and one piece of secondary evidence (please refer to the Identification Form for document requirements), with your application form and post to us at the following address Wealth Focus Pty Ltd Reply Paid 760 Manly NSW 1655 Please do not send us original driving licences or passports as these can very easily get lost in the post. Copies of documents can be certified by an authorised individual, they will need to sight and verify that the copy is a ‘certified true copy’, sign, date, print their name and list their qualification. ANTI-MONEY LAUNDERING REQUIREMENT FOR NEW APPLICATIONS IDENTIFICATION FORM GUIDE TO COMPLETING THIS FORM o Please contact us on 1300 55 98 69 if you have any queries. o If you wish to apply in the name of a trust or company, please contact us for an alternative identification form. SMSF's and retail superannuation applications do not need to provide ID (an online check will be performed for SMSFs) Attach a certified copy of the ID documentation used as proof of identity. ID enclosed should verify your full name; and EITHER your date of birth or residential address. o Complete Part I (or if the individual does not own a document from Part I, then complete either Part II or III.) PART I – ACCEPTABLE PRIMARY ID DOCUMENTS Select ONE valid option from this section only Australian State / Territory driver’s licence containing a photograph of the person Australian passport (a passport that has expired within the preceding 2 years is acceptable) Card issued under a State or Territory for the purpose of proving a person’s age containing a photograph of the person Foreign passport or similar travel document containing a photograph and the signature of the person* PART II – ACCEPTABLE SECONDARY ID DOCUMENTS – should only be completed if the individual does not own a document from Part I Select ONE valid option from this section Australian birth certificate Australian citizenship certificate Pension card issued by Centrelink Health card issued by Centrelink AND ONE valid option from this section A document issued by the Commonwealth or a State or Territory within the preceding 12 months that records the provision of financial benefits to the individual and which contains the individual’s name and residential address A document issued by the Australian Taxation Office within the preceding 12 months that records a debt payable by the individual to the Commonwealth (or by the Commonwealth to the individual), which contains the individual’s name and residential address. Block out the TFN before scanning, copying or storing this document. A document issued by a local government body or utilities provider within the preceding 3 months which records the provision of services to that address or to that person (the document must contain the individual’s name and residential address) If under the age of 18, a notice that: was issued to the individual by a school principal within the preceding 3 months; and contains the name and residential address; and records the period of time that the individual attended that school Who can verify customer identity documents? Please find below a list of all the Approved Individuals that can certify documents: • A Justice of the Peace • An agent of the Australian Postal Corporation who is in charge of an office supplying postal services to the public, or a permanent employee with more than two years continuous service (who is employed in an office supplying postal services to the public) • A notary public (for the purposes of the Statutory Declaration Regulations 1993) • A person who is enrolled on the roll of the Supreme Court of a State or Territory, or the High Court of Australia, as a legal practitioner (however described) • A judge, magistrate, registrar or deputy registrar of a court • A chief executive officer of a Commonwealth Court • A police officer • An Australian consular or diplomatic officer (within the meaning of the Consular Fees Act 1955) • An officer or finance company officer with two or more continuous years of service with one or more financial institutions (for the purposes of the Statutory Declaration Regulations 1993) • An officer with, or authorised representative of, a holder of an Australian Financial Services Licence, having two or more continuous years of service with one or more licensees, and • A member of the Institute of Chartered Accountants in Australia, CPA Australia or the National Institute of Accountants with more than two years continuous membership. Series I & II DS S&P ASX 200 Index Linked DS Deferred Purchase Agreements Dated 22 April 2010 The issuer of this Product Disclosure Statement is Instreet Structured Investment Pty Ltd ACN 140 407 558 Issue arranged by Instreet Investment Limited ABN 44 128 813 016 as authorised representative under AFS Licence No. 246801 1 Important information This PDS is for the offer of an agreement to purchase the ordinary shares as specified in the Product Summary (“Delivery Assets”) on certain terms including deferred delivery (“the Offer”). This PDS is dated 22 April 2010 and is issued by Instreet Structured Investment Pty Ltd (“the Issuer”) and arranged by Instreet Investment Limited (“the Arranger”) pursuant to section 911A(2)(b) of the Corporations Act. Pursuant to section 911A(2)(b), the Issuer will issue the Units in accordance with the offer made by the Arranger. This PDS has not been lodged, and is not required to be lodged with the Australian Securities and Investments Commission (“ASIC”). The Issuer will notify ASIC that this PDS is in use in accordance with the Corporations Act. ASIC and its officers take no responsibility for the contents of this PDS. All fees are inclusive of GST after taking into account any expected reduced input tax credits (unless stated otherwise). All monetary amounts referred to in this PDS are given in Australian dollars (unless otherwise specified). All references to legislation in this PDS are to Australian legislation. Explanations as to tax treatment and other features of the Offer have been provided for Australian investors. Instreet Investment Limited ABN 44 128 813 016 (Instreet) will be the Arranger for investors into the Units and will coordinate your investment in the Units. Instreet is an authorised representative (ASIC Authorised Representative No.322612) of EA Financial, LP under Australian Financial Services Licence No. 246801. EA Financial, LP is responsible for overseeing the services of Instreet but does not guarantee or otherwise provide assurance in respect of the obligations of Instreet or the Issuer. Instreet can be contacted at 1300 954 678 or at Level 34, 50 Bridge Street, Sydney, NSW Australia. EA Financial, LP can be contacted at (02) 9249 7375, or facsimile 9249 7349, or Level 11, 99 Elizabeth Street Sydney NSW 2000. Instreet acts on behalf of EA Financial, LP. Investments in the Units This PDS is an important document which should be read before making a decision to acquire the Units*. The information in this PDS is general information only and does not take into account your investment objectives, financial situation or particular needs or circumstances. Nothing in this PDS is a recommendation by the Issuer or its related entities or by any other person concerning investment in the Units or the Reference Index or any specific taxation consequences arising from an investment by you in the Units. You should also obtain independent financial and taxation advice as to the suitability of this investment to you having regard to your investment objectives, financial situation and particular needs. No cooling-off rights apply to investments in the Units. Potential investors should note that the Issuer retains discretion not to proceed with the issue of Units on the Commencement Date and will terminate any Units already issued if that occurs. In particular, the Issuer will not proceed with the issue of Units and will terminate any Units already issued if it considers that it and its affiliates have not completed sufficient arrangements for hedging their respective obligations in respect of the Units. If a decision is made not to proceed with the issue of Units and to terminate any Units already issued, the Issuer will return application monies or the Total Investment Amount to applicants or investors (as applicable) without interest within 10 Business Days of the scheduled Commencement Date. 2 Instreet Investment Eligible investors and electronic PDS This PDS and the Offer are available only to Australian resident investors receiving this PDS (including electronically) in Australia. Applications from outside Australia will not be accepted. If you are printing an electronic copy of this PDS you must print all pages including the Application Form. If you make this PDS available to others, you must give them the entire electronic file or printout, including the Application Form and any additional documents that the Issuer may require such as identification forms for the purpose of satisfying Australian anti-money laundering legislation. The Units have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States or to, or for the benefit of U.S. persons unless the Units are registered under the Securities Act or an exemption from the registration requirements of the Securities Act is available. Updated information Information set out in this PDS is subject to change from time to time. Information not materially adverse to Investors in the Units may be amended without issuing an updated or supplementary PDS. You can find this updated information at any time on the Instreet website at: www.instreet.com.au A paper copy of this PDS (and any supplementary documents) can be obtained free of charge on request by contacting Instreet at 1300 954 678 or at Level 34, 50 Bridge Street, Sydney, NSW Australia. Making an investment Units can be issued only if you use an Application Form (including relevant attachments) attached to either a paper or electronic copy of this PDS. To make additional investments in the Units, Investors should contact the Issuer. Returns not guaranteed An investment in Units is not capital-protected and returns are not guaranteed. In fact, you could lose your entire Total Investment Amount. Neither the Issuer or any of their associates or subsidiaries provide capital protection or guarantees the return on your investment in the Units or any gain. Please refer to Section 2 “Risks” in this PDS. Superannuation fund investors Superannuation funds can invest in Units. Superannuation fund investors should take particular note of the representations and warranties they make when investing – see clause 13.2 in Section 10 “Terms of the Deferred Purchase Agreement” of this PDS. Definitions Capitalised terms used in this PDS have the meaning given in Section 11 “Definitions” or in Section 1 “Product Summary”. *Nature of the Units The Units are securities for the purposes of Chapter 7 of the Corporations Act. Please note “Units”, when used in this PDS, means an agreement to buy the Delivery Asset between the Issuer and the Investor pursuant to the Deferred Purchase Agreement. The Units are not units in a managed investment scheme. Instreet Instreet works closely with the financial adviser community to create and distribute investment products that harness inspiration, market insight and intelligent structuring. After identifying adviser needs and market trends, Instreet builds investment products by sourcing quality wholesale providers from around the world. By doing so, Instreet makes institutional assets available to individual investors. Instreet’s products are administered by recognised financial institutions and Instreet obtains ratings from research houses. The end result is a selection of investment products designed to better achieve the goals of client and adviser. 3 Timetable The following table briefly summarises some of the key information contained in this PDS. It is not intended to be a complete summary of this PDS and you should read the entire PDS before deciding whether to invest. The information in this section is qualified in its entirety by the more detailed explanations in applicable sections in the PDS and specifically Section 10 “Terms of the Deferred Purchase Agreement”. Timetable** Issue Opening Date 22 April 2010 Issue Closing Date 4 pm on 31 May 2010 Cleared funds must be received by this time. Commencement Date 15 June 2010 Issuance Observation Dates 15 June 2010, 15 July 2010, 16 August 2010 Maturity Observation Dates 31 March 2011, 29 April 2011, 31 May 2011 Maturity Date 31 May 2011 Investment Term Approximately 1 year Buy-Back Dates Monthly on the last Business Day of each month commencing September 2010. Investors must lodge their Buy-Back request no later than 10 Business Days before the relevant Buy-Back Date. Settlement Date Maturity Date plus 10 Exchange Business Days Business Day A day that is a business day in Sydney Exchange Business Day A day which is both a Business Day and on which the ASX is open for trading in Sydney **This timetable is indicative only. The Issuer may, at its discretion, extend or shorten the Offer Period without prior notice. If this happens, all dates may vary. If the Issuer varies the Offer Period, it may post a notice on the website informing applicants of the change at www.instreet.com.au. # The Units will only gain economic exposure to the Reference Index on or about the Commencement Date. If a decision is made for any reason not to issue Units, the Issuer will return application monies or Total Investment Amount to applicants or investors (as applicable) without interest within 10 Business Days of the scheduled Commencement Date. The Units may mature early in the case of an Early Maturity Event, and the Maturity Date may be extended in the case of a Market Disruption Event. Applications and issue of Units Units will be issued within one month upon receipt of cleared funds of the Total Investment Amount specified in the Application from an investor. The Unit’s economic exposure to the Reference Index (the S&P ASX 200 Index), will begin on the Commencement Date. If a Unit is issued prior to the Commencement Date, it will have no economic exposure until the Commencement Date. If for any reason the exposure to the Reference Index or the minimum Barrier Level cannot be achieved on the Commencement Date, investors will be refunded their Total Investment Amount without interest, and any Units already on issue will be terminated. 4 Instreet Investment The Deferred Purchase Agreement Overview An investment in Series I or II Units offered under this PDS is an investment in a Deferred Purchase Agreement (“DPA” or “Units”). The investment aims to provide Investors with the potential to benefit from a fall in the Australian equity market. The performance of the DPA is linked to the decline in the value of the Australian stock market as measured by the S&P/ASX 200 Price Return Index (“S&P ASX 200 Index”) from the Commencement Date, subject to a Strike Level and provided that the Barrier Level is never reached or exceeded. The Final Value of the Units is determined by reference to the Reference Index Return compared to the Strike Level. If the Barrier Level is reached, the Units terminate early and you will lose your entire Total Investment Amount. An investment in Series I or II Units may suit you if you: Want an investment with a defined outcome, where losses are limited to the Issue Price of the Units. Are of the view that the Australian equity market will fall and seek a positive leveraged return if it does. Are seeking an investment with the potential to offset the decline in the value of an Australian equity portfolio. Believe that the Reference Index for the relevant Series may decrease by more than the Break-even Level by the Maturity Date. Believe that the Reference Index Return will be below the Strike Level by the Maturity Date. Believe that the Reference Index will not reach or exceed the Barrier Level during the Investment Term. Fully understand the risks of investing in equity-linked investments. Intend to buy and hold Units until Maturity. May be seeking an investment which is suitable for self-managed superannuation funds. The investment may not suit you if you are seeking low-risk returns, or you do not believe the Reference Index for the relevant Series may decrease by more than the Break-even Level and the Reference Index Return will be below the Strike Level by the Maturity Date, or do not have sufficient financial resources to bear the risks associated with an investment in these Units which could include the loss of your entire Total Investment Amount (please refer to Section 3.4 “Return Analysis at Maturity”). Before investing in the DPA you should consider carefully the risks that may affect the financial performance of the investment. For more information, please refer to Section 2 “Risks” of this PDS. 5 Benefits and Features The Units offered under this PDS seek to provide you with the following benefits and features: For more information see: Investment opportunities The Units offer an Investor the potential to benefit from a fall in value of the Section 1 “Product Australian equity market below the Strike Level and provided that the Barrier Summary” Level is never reached or exceeded. The Final Value of the Units is Section 2 “Risks” determined by reference to any decrease of the Reference Index below the Strike Level. If the Reference Index increases and the Barrier Level is reached or exceeded, the Units terminate early and you will lose your entire Total Investment Amount. This investment exposure is subject to risks, limitations and conditions. One off upfront The Units provide exposure to a fall in value in the Australian equity market Section 1 “Product payment and for an Issue Price which is a fraction of the size of the Notional Exposure. Summary” enhanced Please note if the Reference Index for the relevant Series does not decrease exposure by more than the Break-even Level at the Maturity Date, you will receive an amount less than the Issue Price per Unit at Maturity. If the Reference Index Return for the relevant Series is not below the Strike Level, you will receive nothing at Maturity and will lose your entire Total Investment Amount. Risk Management Investment An investment in the Units may be suitable for Investors seeking to Section 1 “Product manage the potential downside risk of an Australian equity portfolio. Summary” However, the Reference Index will not track an Investor’s portfolio exactly and the fall in value of their portfolio may be significantly more than the Final Value of the Units. Term Approximately 1 year. Investors may request a redemption of all or part of their Units on each monthly Buy-Back Date. There are also costs, e.g. Break Costs, associated with early redemption. Application for Units should be made only by persons intending to hold Units for the entire Investment Term. Simple Investors may access Units in each Series by completing the Application documentation Form attached to this PDS. A defined outcome Section 2 “Risks" Section 1 “Product Summary” An Investor’s potential financial loss is limited to the Issue Price of the Units. Section 1 “Product Summary” Self-Managed An investment in the Units may be suitable for self-managed Superannuation superannuation funds. Funds 6 Section 1 “Product Summary” Instreet Investment Section 1 “Product Summary” Risks Some key risks of an investment in the Units include: Capital invested in There is no capital protection or guarantee of financial return on your the Units is at risk investment. If the fall in the Reference Index at Maturity is less than the Break-even Level, you will incur a loss of part of or even your entire Total Investment Amount. Section 2 “Risks” and Section 3.4 “Return Analysis at Maturity” Gains and losses on your initial Total Investment Amount are magnified Because the Issue Price is a fraction of the Notional Exposure movements in the Reference Index will have a magnified effect on the Final Value of your Units. While this feature has the potential to increase gains it can also magnify losses. Section 2 “Risks” and Section 3 “Worked Example , Calculating Final Value and Sensitivity Analysis “ Performance risk The Australian equity market may perform well. This may be caused by a number of factors, including global factors or country, industry or asset-specific factors. Section 2 “ Risks” Strike Level The Units provide exposure to a fall of the Reference Index below the Strike Level. If the Reference Index Return is at or above the Strike Level at Maturity, you will receive no returns on your Units and you will lose your entire Total Investment Amount. Section 2 “ Risks” and Section 3.4 “Return Analysis at Maturity” Barrier Event If the Reference Index reaches or exceeds the Barrier Level on any Section 2 “ Risks” Exchange Business Day following the final Issuance Observation Date, a Barrier Event will occur and the Units will terminate early. If a Barrier Event occurs you will receive no payment and you will lose your entire Total Investment Amount. Value of the Units before the Maturity Date The Final Value of the Units is only calculated by reference to the S&P ASX 200 Index or the Issuance Observation Dates and Maturity Observation Dates. Before Maturity the value of the Units will be determined by many factors such as market value of the Reference Index, Maturity Date, volatility, interest rates and other market factors. Section 2 “ Risks” Creditworthiness of the Issuer, Hedge Provider and Security Trustee The Units are secured obligations of the Issuer. The Issuer may not be able to meet its obligations under the DPA, but has granted Investors a Charge which is held on trust by the Security Trustee. If the Issuer fails to meet a material obligation under the DPA, the Security Trustee may enforce the Charge in which case Investors are unsecured creditors of the Hedge Provider. Investors’ rights of recourse against the Issuer on a default are limited to the assets subject to the Charge. This structure has the effect of passing through the credit rating of the Hedge Provider and protecting different product Series from cross-liability issues (other than on an insolvency of either the Issuer or the Hedge Provider). The Issuer will only deal with Hedge Providers who have a credit rating of Investment Grade or better. The Hedge Provider may not be able to meet its obligations under the Hedge. The Security Trustee may not be able to perform its obligations under the Charge and Security Trust Deed. Section 2 “Risks” Section 9 “Additional Information” Liquidity risk You may not be able to realise your investment even if you want to. Applications for an Issuer Buy-Back are only available monthly and are subject to acceptance at the discretion of the Issuer. In addition, there is no secondary market for the Units. Section 2 “Risks” and Section 7 “Sale of Units before Maturity – Issuer Buy-Back” Early Maturity risk The Units can mature early if an Early Maturity Event occurs or if an Investor requests an Issuer Buy-Back and consequently Break Costs may be incurred. Section 2 “ Risks” and Section 7 “Sale of Units before Maturity – Issuer Buy-Back” 7 This page is intentionally left blank Contents Section Page 01. Product Summary 10 02. Risks 19 03. Worked Example, Calculating Final Value and Sensitivity Analysis 24 04. Reference Index Disclaimer 29 05. Parties to the Offer 30 06. What happens at Maturity? 33 07. Sale of Units before Maturity – Issuer Buy-Back 34 08. Taxation 35 09. Additional Information 38 10. Terms of the Deferred Purchase Agreement 42 11. Definitions 52 Appendix A – Direct Debit Request Service Agreement 60 Managing your Investment 62 How to complete the Application Form 63 How to complete the Issuer Buy-Back Form 68 Application Form 69 Issuer Buy-Back Form 79 Contact Details 83 9 1. Product Summary This Offer of Units in the Instreet Link DS Series provides Investors with leveraged exposure to Reference Indices in approximately 1 year time, as follows: Series Reference Index Term Unit Price Strike Level Indicative Barrier Level* I S&P ASX 200 Index Approximately 1 year 0.86 95% 115% II S&P ASX 200 Index Approximately 1 year 1.06 100% 115% *The Barrier Level will be set on the Commencement Date. Please see below under the heading “Barrier Level and Barrier Event”. The Barrier Level is expressed as a percentage of Reference Index at the Commencement Date (subject to averaging across the three Issuance Observation Dates). Key Information Series I & II The individual Series Units are interests in Deferred Purchase Agreements issued by the Issuer on the terms contained in this PDS. The Units are designed to deliver at the Settlement Date a Delivery Parcel which has a value equivalent to the Final Value at the Maturity Date. The Final Value will be linked to a decline in the Reference Index provided the Reference Index Return is below the Strike Level at Maturity and provided the Reference Index never reaches or exceeds the Barrier Level during the Investment Term. The Units only provide a return where the Reference Index Return is below the Strike Level. If the Reference Index Return is at or above the Strike Level at Maturity, you will receive nothing and will lose your Total Investment Amount. In addition, if the Reference Index reaches or exceeds the Barrier Level at any time during the Investment Term, the Units will terminate early and you will lose your entire Total Investment Amount. The difference between each Series is the applicable Issue Price and Strike Level for each Series. The Barrier Level is the same for both Series. Strike Level Series 1: 95% Series II: 100% Barrier Level and Barrier Event A Barrier Event occurs if the Reference Index closes at or above the Barrier Level on any Exchange Business Day following the final Issuance Observation Date. If a Barrier Event occurs, the Units terminate early and you will receive no return on your Units. Therefore, if a Barrier Event occurs, you will lose your entire Total Investment Amount. The actual Barrier Level will be fixed on the Commencement Date. The indicative Barrier Level is 115% of the Reference Index at the Commencement Date (subject to averaging across the three Issuance Observation Dates) for both Series I and II. The indicative Barrier Level is the Barrier Level that would have applied if the date of this PDS were the Commencement Date. The Barrier is determined by the Issuer at its discretion on the Commencement Date and is affected by various factors. These factors include: Factor Reference Index forward price Reference Index volatility Interest Rates 10 Instreet Investment Movement in factor Impact on Barrier Level Likewise decreases in each of these factors will result in an increase in the impact on the Barrier Level. While the actual Barrier Level may vary on the Commencement Date, any profit the Issuer and/or its associates may make from the Offer will not vary (i.e. the Issuer will not profiteer from a reduced Barrier Level). Minimum Barrier Level 112.5% of the Reference Index at the Commencement Date (subject to averaging across the three Issuance Observation Dates) If the actual Barrier Level set on the Commencement Date is below the minimum Barrier Level, the Offer of the Units will not proceed. In this case, your Total Investment Amount will be refunded without interest, and any Units already on issue will be terminated. Issuer Instreet Structured Investment Pty Limited ABN 82 140 407 558 Arranger Instreet Investment Limited ABN 44 128 813 016 AFSL 246801, an authorised representative (ASIC Authorised Representative No. 322612) of EA Financial, LP under Australian Financial Services Licence No. 246801. EA Financial, LP is responsible for overseeing the services of Instreet but does not guarantee or otherwise provide assurance in respect of the obligations of Instreet or the Issuer. Security Trustee AET Structured Finance Services Pty Limited ABN 12 106 424 088 Registrar Link Market Services Limited ABN 54 083 214 537 Minimum Investment 2,500 Units Notional Exposure per Unit (“N”) A$10.00 per Unit Currency The Units are Australian Dollar (AUD) investments. Issue Price Series I: A$0.86 per Unit Series II: A$1.06 per Unit Break-even Level Series I: 13.6% negative return on the Reference Index over the Investment Term The Notional Exposure per Unit is the amount of notional exposure that Investors gain to the Reference Index at the Commencement Date. This means that every Unit has a A$10.00 exposure to the negative Reference Index Return, despite Investors paying an Issue Price of less than A$10 per Unit. This effectively means that Units have notional “leverage” or “gearing”without any actual borrowing. This feature has the potential to increase gains but also magnify losses. Please see Section 2 “Risks”. Series II: 10.6% negative return on the Reference Index over the Investment Term The Break-even Level is the amount by which the Reference Index must decrease between the Commencement Date and the Maturity Date (subject to averaging across the Issuance Observation Dates and Maturity Observation Dates) for an investor to receive a return from an investment in the Units equal to the Issue Price. The Break-even Level is calculated by taking into account both the Strike Level and the Issue Price paid by an Investor. If the Reference Index does not decrease by the Break-even amount at the Maturity Date you will receive an amount less than the Issue Price per Unit at Maturity. Calculation Agent Instreet Investment Limited ABN 44 128 813 016. 11 1. Product Summary Continued Return on the Units at Maturity At Maturity, the Issuer will calculate the Final Value of Units for each Series by determining the Reference Index Return for the relevant Series. The Reference Index Return will be subtracted from the Strike Level and the greater of the result and zero will be multiplied by A$10.00, being the Notional Exposure. You should be aware that Units will have the following return profile at Maturity. Where the Reference Index falls over the Investment Term: by more than the Break-even Level, your return per Unit will be greater than the Issue Price per Unit. by less than the Break-even Level and the Reference Index Return at Maturity is below the Strike Level at Maturity, your return per Unit will be less than the Issue Price per Unit. by less than the Break-even Level and the Reference Index Return at Maturity is at or above the Strike Level, you will receive no return per Unit and you will lose your entire Total Investment Amount. Where the Reference Index reaches or exceeds the Barrier Level on any Exchange Business Day during the Investment Term after the final Issuance Observation Date (i.e. a Barrier Event occurs) then the Units will mature Early and your return per Unit will be zero (i.e. you will lose your Total Investment Amount). Please note, where the Reference Index Return at Maturity is not below the Strike Level and where the Reference Index remains at the same level or rises over the Investment Term your return per Unit will be zero (i.e. you will lose your Total Investment Amount). Please refer to the “Return Analysis at Maturity” for each Series in Section 3.4 of this PDS for examples of the effect of different Reference Index Returns on the Final Value per Unit. Reference Index Series I & II – S&P ASX 200 Price Return Index (“S&P ASX 200 Index”) The S&P ASX 200 Index is widely followed and is designed to be a gauge for the Australian stock market and covers approximately 78% of Australian stock market capitalisation being the top 200 ASX listed companies by market capitalisation. The criteria for index additions follow: Listing. Only securities listed on the Australian Securities Exchange are considered for inclusion in the Index. Market Capitalisation. Companies are assessed based on the average of their previous sixth month day-end float-adjusted market capitalisation. Public Float. There must be public float of at least 30% for stock to warrant inclusion in the Index. Liquidity. Only securities that are actively and regularly traded are eligible for inclusion in the Index. The S&P ASX 200 Index is calculated by Standard & Poor’s. For more information please refer to the S&P website at http://www.standardandpoors. com/indices/sp-asx-200/en/us/?indexId=spausta200audff--p-au---Source: Standard & Poor’s 12 Instreet Investment Final Value The Final Value will depend on the decline in the Reference Index over the Investment Term. Unless Early Maturity has occurred, you will receive at Maturity the Delivery Parcel (or Sale Monies if you elect to use the Agency Sale Option) with a value per Unit equal to the Final Value per Unit (less any Delivery Costs). The process for determining the Final Value per Unit is as follows: 1. Calculate the Reference Index Return 2. Subtract the Reference Index Return from the Strike Level 3. The Final Value of each Unit is the Notional Exposure per Unit multiplied by the greater of zero or the Strike Level less the Reference Index Return Where the Reference Index rises to or above the Barrier Level on any Exchange Business Day during the Investment Term after the final Issuance Observation Date then your return per Unit will be zero (i.e .you will lose your Total Investment Amount). The Final Value per Unit can be shown by the following formula where a Barrier Event has not occurred: N x Minimum [Strike Level – Reference Index Return, 0] Where “N” is the Notional Exposure per Unit. Please see Section 3 “Worked Example, Calculating Final Value and Sensitivity Analysis” for more information. Reference Index Return Reference Index Return means: Reference Index at Maturity Date Reference Index at Commencement Date Where: Reference Index at Commencement Date = The arithmetic mean of the official closing levels as published by S&P on the three Issuance Observation Dates. Reference Index at Maturity Date = The arithmetic mean of the official closing levels as published by S&P on the three Maturity Observation Dates. 13 1. Product Summary Continued Delivery Mechanism The Final Value will be satisfied by the physical delivery of the Delivery Parcel. The settlement of the transfer of the ASX listed securities that constitute the Delivery Asset will occur on the Settlement Date which is the 10th Exchange Business Day after the Maturity Date. No later than 10 Business Days prior to the Maturity Date, Investors may enter into an agency agreement with the Issuer to have the Delivery Parcel sold on their behalf – the Agency Sale Option. Investors will then receive the Sale Monies with a value equivalent to the Final Value less Delivery Costs. The Issuer will notify Investors in the Early Notice of Maturity whether Early Maturity will occur by this delivery mechanism or by payment of a Termination Payment. Please refer to clause 5.4 in Section 10 “Terms of the Deferred Purchase Agreement”. For further details please see Section 6 “What Happens at Maturity?” Delivery Parcel A basket containing equal proportions of ordinary shares in each of the following companies: Delivery Asset – Company Shares ASX Code Website BHP Billiton Limited BHP www.bhp.com.au Commonwealth Bank of Australia CBA www.commbank.com.au Wesfarmers Limited WES www.wesfarmers.com.au Westpac Banking Corporation WBC www.westpac.com.au Woolworths Limited WOW www.woolworths.com.au In the event one or more of the above companies are no longer listed on the ASX or suspended from trading, the Calculation Agent shall either select a replacement security which is a constituent of the S&P/ASX 200 Index or the Issuer shall determine that the basket shall contain only the companies not impacted by such occurrence. Information and announcements on shares comprising the Delivery Asset is also available on the ASX website (www.asx.com.au), the websites in the table above and major newspapers and other information services. After the Maturity Date, you will have exposure to the securities comprising the Delivery Asset, the value of those securities will be determined by the price of the security as traded on the ASX. You should be aware that the Issuer in its discretion can change or substitute the Delivery Assets in certain circumstances, and you should take this into account when considering whether to invest in the Units. For further information about substitution of the Delivery Asset refer to clauses 4.7 and 6.1 of Section 10 “Terms of the Deferred Purchase Agreement” of this PDS. 14 Instreet Investment Maturity processes Early Maturity The Units can mature early if a Barrier Event or an Early Maturity Event occurs or if an Investor requests an Issuer Buy-Back. Issuer Buy-Backs are discussed below. Early Maturity Events generally arise in circumstances which prevent the Issuer being able to hedge or deliver on its obligations under the Terms and conditions of the Instreet Link DS Series. Early Maturity Events could include (but are not limited to), for example, circumstances where the Reference Index ceases to exist, a Change of Law occurs that prevents the normal operation of the Units or results in the Issuer having to pay additional amounts in relation to the Units or if the Issuer’s Hedge terminates early for any reason. A Barrier Event occurs if the Reference Index reaches or exceeds the Barrier Level on any Exchange Business Day during the Investment Term after the final Issuance Observation Date (i.e. a Barrier Event occurs). In this case, the Units will mature early and the Early Maturity Value or the Termination Payment will be zero. If an Early Maturity Event occurs, the Issuer has the discretion to call Early Maturity or to allow the Units to continue. Please see Section 6 “What happens at Maturity” and particularly clause 5 of Section 10 “Terms of the Deferred Purchase Agreement” in this PDS for more details. If an Early Maturity Event (other than a Barrier Event) occurs then the Early Maturity Value as calculated by the Issuer will take into consideration Break Costs. Break Costs can reduce the value of your Units. Delivery Parcel The Final Value will be satisfied by the delivery of a basket which has a market value equivalent to the Final Value. The basket will contain equal proportions by values of each Delivery Asset (subject to adjustment). The number of each Delivery Asset in the Delivery Parcel to be delivered by the Issuer to you on the Settlement Date is determined by the following formula: (Final Value per Unit x No. of Units Held – Delivery Costs) x weight of Delivery Asset Delivery Asset Price Under clause 5.3, the Issuer has the complete discretion whether to deliver the Delivery Assets to Investors or to pay a Termination Payment following an Early Maturity Event. Please refer to clause 5.3 of Section 10 “Terms of the Deferred Purchase Agreement” of this PDS. Further, in certain circumstances the Issuer may deliver other securities contained in the S&P/ASX 200 Index in its discretion, or deliver only some of the Delivery Assets in the basket. Please refer to clauses 4.7 and 6.1 of Section 10 “Terms of the Deferred Purchase Agreement” of this PDS. The number of the Delivery Assets will be determined at the offer price prevailing at the time of calculation, and Investors will suffer the bid/offer spread on the relevant security (if any). The Issuer is not currently aware of any Delivery Costs which would be applicable as at the date of this PDS. However, such costs may arise between the Commencement Date and the date of Maturity or Early Maturity. 15 1. Product Summary Continued Maturity processes Delivery Asset Price The price paid by the Issuer to acquire the Delivery Asset on the first Exchange Business Day following the Maturity Date (or such other time as reasonably determined by the Issuer). Agency Sale Option Investors can also request the Issuer to sell their Delivery Parcel and pay them Sale Monies under the Agency Sale Option. This Election must be made on the Notice of Maturity. Please see clause 4.4 of Section 10 “Terms of the Deferred Purchase Agreement” of this PDS. Issuer Buy-Back Can the Units be sold prior to Maturity? Yes. However, the Units are designed to be held to Maturity. You should invest only if you intend to invest for the full term until the Maturity Date. There is no secondary market for the Units but the Issuer may redeem your investment prior to the Maturity Date. To complete an Issuer Buy-Back Form see the “Managing your investment” section at the back of the PDS for more details. Please see also Section 7 “Sale of units before Maturity – Issuer Buy-Back” of this PDS for more details. Minimum Buy-Back Amount 1,000 Units. Settlement for Buy-Back Delivery Assets shall not be provided in the event of an Issuer Buy-Back. Instead, settlement will be in cash. Buy-Back Dates Buy-Back Dates occur monthly on the last Business Day of the month commencing September 2010 and are subject to acceptance by the Issuer. Investors will be required to provide their Buy-Back request no later than 10 Business Days prior to the relevant Buy-Back Date. Buy-Back notices can be downloaded from the website www.instreet.com.au. Issuer Buy-Back Price The amount you receive for each Unit is determined by the Issuer in its absolute discretion. This amount will include any Break Costs and may be less than the Issue Price per Unit. You may contact the Issuer and request an indicative Buy-Back Price before proceeding with your request. Indicative Prices The Issuer will provide monthly indicative Buy-Back Prices to Investors and may provide indicative pricing for Units generally. This may involve calculating a mid-market price at the end of each calendar month. Any such indicative price is not a firm trading price and shall not be an offer to buy back the Units at that price. The Buy-Back Price is determined by the Issuer in its absolute discretion, and may differ from the indicative Unit pricing because of Break Costs. Break Costs will depend on the economic value the Issuer achieves on the unwinding of its hedge position (i.e. the amount it achieves on the sale or unwind of the options or other financial instruments that underlie the Units). The economic value the Issuer achieves will be reliant on several factors including but not limited to market liquidity, volatility, interest rates, market prices, foreign exchange rates, and the time to Maturity. The impact of these factors are largely unknown and are dependant on movements in financial markets. Investors and their advisers can contact the Issuer and request an estimate of the Buy-Back Price (including Break Costs) that would apply to Units on any given day. The Issuer will provide estimates of Buy-Back Prices (which will include Break Costs) to Investors when it is able to accurately value the Units to enable them to determine the likely Buy-Back Price if the Investor requests an Issuer Buy-Back. However, the actual Buy-Back Price at which the Issuer will buy back your Units will not be known at the time an Issuer Buy-Back request is made and may be significantly less than the estimate provided. Please refer to “Break Costs” in Section 2 “Risks”. 16 Instreet Investment The following table shows some of the factors that will affect the Buy-Back Price: Factor Effect on Buy-BackPrice* Increase in Reference Index Interest Rate increase Time remaining to Maturity decreases Market volatility increase (Generally, however if the Reference Index is close to the Barrier Level, market volatility may result in a lower Buy-Back increase price) *The arrows in the above table showing the effect of each factor on the Buy-Back Price assume that all other factors (not limited to those specified) remain constant. More than one of these factors may change at the same time and the net effect may be different to the effect shown in the table above. Fees Upfront Fee payable to your advisor and the Arranger A fee of up to 1.1% (GST inclusive) of the Notional Exposure (i.e. A$10) per Unit maybe paid to your advisor upfront (the “Advisor Fee”). That is, an upfront fee per Unit of up to 1.1% of A$10.00 (i.e. A$0.11 per Unit). A rebate of this fee may reduce the amount you pay under your Application and may be negotiated by you with your advisor. Payment of this fee shall be administered by the Issuer. For example, if you invest A$10,000 the Advisor Fee for Series I will be (A$10,000/A$0.86) x A$10 x 1.1% = A$1,279. The Arranger will receive a distribution coordination fee of up to 0.90% (GST inclusive) as a percentage of the Notional Exposure per Unit upfront (the “Upfront Fee”) for all Units issued each Series. Payment of these fees will be made by the Registrar (on instruction from the Issuer) to the Arranger who will liaise with the distributors. For example, if 5,000 Units in Series I are issued in total, then the Arranger may receive 5,000 x A$10 x 0.90% = A$450. The Advisor Fee and the Upfront Fee payable to the Arranger are paid by the Issuer. There are no fees being deducted from the Issue Price of the Units and as such your exposure to the Reference Index will be A$10 per Unit, being the Notional Exposure per Unit. These fees will not be refunded in the event of any Issuer Buy-Back or Early Maturity Event (including a Barrier Event). Investors should be aware that in addition to other factors that may cause changes in the price of the Units, the Issuer Buy-Back Price, Early Maturity Value or Termination Payment will be adjusted to reflect a reduction in value on account of these fees. Other fees and costs The Issuer may earn income and profit from its management of the underlying risk associated with the Units, which does not impact the return investors receive and is not charged as a fee. The calculation of the Final Value of Units is independent of any income earned by the Issuer. Any fees or expenses payable to the Registrar and the Security Trustee and all the expenses of the offer are to be paid by the Issuer. Additional fees may be paid by an entity associated with the Issuer or Hedge Provider to financial advisers and the Arranger. Please contact your financial adviser for information on any commission or similar payments that they may receive. 17 1. Product Summary Continued Other information Risks Investment in the Units involves risks. You should also carefully consider the risk factors discussed in Section 2 “Risks” of this PDS. The Issuer recommends that you seek personal financial and taxation advice before investing in the Units or entering into any subsequent dealing in the Units. Adjustment Events and Market Disruption Events Unexpected events can occur which can impact the Units in a way the Issuer has not anticipated, often adversely. The Issuer has certain powers under Section 10 “Terms of the Deferred Purchase Agreement” in this PDS in relation to how it can deal with such events, referred to as Adjustment Events and Market Disruption Events. Examples of these are changes in the Reference Index or in laws and regulations that would in turn affect the Units. For example, if the S&P ASX 200 Index was terminated and stopped being calculated then Units would be affected because there is no longer a Reference Index. In this case, the Issuer might, amongst other options consider replacing the Reference Index. In some circumstances these events could also be classified as Early Maturity Events and lead to Early Maturity of the Units. Please refer to clause 6 “Adjustment Events and Market Disruption Events” in Section 10 “Terms of the Deferred Purchase Agreement” of this PDS and to “Adjustment Events and Market Disruption Events” in Section 2 “Risks” of this PDS. Tax The potential taxation consequences of the Units are discussed in Section 8 “Taxation” of this PDS. Among other factors, investors should be aware that no coupons are payable during the Investment Term of these series of units when determining tax consequences. The Issuer recommends that you consult with your own personal financial and taxation adviser before investing in the Units or entering into any subsequent dealing in the Units. Further information If you have read this PDS and have any questions either before or after investing, please contact Instreet on 1300 954 678 or your advisor. Making an investment application To apply for the Units you should fill out an Application Form contained in the latter part of this PDS. You may also be required to provide other supporting documentation, such as identification forms, as requested by the Issuer. By signing the Application Form, you agree to be bound by the Terms, which include the Terms of the Deferred Purchase Agreement and this PDS. You also agree to appoint the Issuer as your agent to enable the Issuer to execute all documents necessary on your behalf to effect the sale and purchase of Units. Refer to the “Managing your investment” section in the latter part of the PDS for more details. Self-managed superannuation funds (“SMSFs”) This product is open to SMSFs to invest in. The Issuer recommends that SMSFs seek financial and taxation advice before investing in the Units or entering into any subsequent dealing in the Units. Beneficial Interest The beneficial interest in a Portion of the Delivery Asset held for each Unit an Investor holds. The beneficial interest will be set out in the Confirmation Notice we send you and is a feature of the product designed to ensure the Units are a “security” under the Corporations Act. 18 Instreet Investment 2. Risks The Units provide an exposure to the fall (below the Strike Level) of the Australian stock market as measured by the S&P ASX 200 Index. Barrier Event. If the Reference Index reaches or exceeds the Barrier Level at close of any Exchange Business Day following the third Issuance Observation Date, a Barrier Event will occur. If a Barrier Event occurs, the Units will terminate early and you will receive no Delivery Parcel or other payment. In this case you will lose your entire Total Investment Amount. The Final Value per Unit is subject to the Strike Level (specified under “Key information” in the Product Summary) at the end of the Investment Term. If a Barrier Event occurs, the Units will terminate early, you will receive no return and will lose your entire Total Investment Amount. Some of the risks associated with the Units include: Strike Level. If the Reference Index Return at Maturity is greater than or equal to the Strike Level, the Final Value per Unit will be zero and you will lose your entire Total Investment Amount. If the Reference Index Return at Maturity is less than the Strike Level, the Final Value per Unit will be paid to you by delivery of the Delivery Parcel (unless the Agency Sale Option is used). Note that the Final Value per Unit will be less than the Issue Price for a particular Series unless the Reference Index Return is greater than the Break-even Level. Capital invested in the Units is at risk. There is no capital protection or guarantee of financial return in respect of your investment in the Units. The value of the Units is calculated by reference to the performance of the Reference Index. If the Reference Index at Maturity for a relevant Series of Units is greater than the Break-even Level, you will incur a loss of all or part of your Total Investment Amount. If the Reference Index Return at Maturity for a relevant Series of Units is at or above the Strike Level, you will receive no returns and you will lose the entire amount you have invested in the Units. The risk of a loss of your Total Investment Amount means that, in order to recover and realise a return upon their investment, Investors must generally be correct about the direction, timing and magnitude of an anticipated change in the value of the Reference Index over the Investment Term. Please refer to Section 3.4 “Return Analysis at Maturity”. Price Index. Performance of the Reference Index reflects the movements in the price of the shares in the Index and does not take into account dividends, interest or other income paid on those shares. Calculation of Final Value per Unit and averaging period risk. For the purpose of calculating the Final Value per Unit the performance of the Reference Index is calculated based on the arithmetic mean of the official closing levels on the Maturity Observation Dates and the Issuance Observation Dates (rather than solely at the Commencement Date and Maturity Date). The Reference Index Return calculated in this way may be lower or higher than the return on the Reference Index calculated using the closing level on the Commencement Date and Maturity Date only. In particular, this averaging feature may reduce the Final Value of the Units depending on the circumstances particularly if the Reference Index is higher on any one Maturity Observation Date compared to the Maturity Date or the Reference Index is falling over the period of the Maturity Observation Dates. Performance of the Reference Index. Historical prices of the Reference Index should not be taken as an indication of the future performance of the Reference Index during the Investment Term. It is impossible to determine with certainty whether the Reference Index will rise or fall. The return on the Reference Index is subject to the performance of the individual equities or assets included in the Index. Therefore, all factors likely to affect the performance of the securities which comprise the Reference Index are important and Investors should consider all appropriate publicly available information in relation to the Reference Index (and the securities which comprise it). These factors include, but are not limited to, movements in international financial markets, interest rates, currency rates and global economic, political, technological and environmental factors. Value of the Units before the Maturity Date. The Final Value of the Units is only calculated by reference to the Reference Index on the three Maturity Observation Dates. The market value of the Units before the Maturity Date will be determined by many factors. These include: Movements in the Reference Index have a magnified effect on returns. Returns on Units are determined by reference to the Notional Exposure per Unit which is significantly larger than the Issue Price. This means that movements in the Reference Index will have a magnified effect on returns on the Total Investment Amount. While this may provide the potential to increase returns on your Total Investment Amount it will also magnify losses if the Reference Index rises or fails to fall below the Break-even Level described in Section 1 “Product Summary”. Please refer to the “Return Analysis at Maturity” for each Series in Section 3.4 of this PDS for examples of the effect of different Reference Index Returns on the Final Value per Unit. Reference Index market value Reference Index volatility Time to Maturity Interest rates Fees Creditworthiness of the Hedge Provider Investors should be aware the Units are designed to be held to Maturity and are not designed to be a trading instrument. 19 2. Risks Continued Creditworthiness of Issuer, Hedge Provider and Security Trustee. The Issuer has no creditworthiness, but the Charge and Security Trust Deed operate to pass through the credit rating of the Hedge Provider. If the Issuer goes into liquidation or receivership or statutory management or is otherwise unable to meet its debts as they fall due, the Investor could receive none, or only some, of the amount invested. A relevant factor for the assessment of counterparty risk of the Issuer is the financial strength of the Issuer and the Hedge Providers. The financial statements for the Issuer and Instreet Investment Limited are available upon the request of investors by contacting the Issuer. The Issuer was established for the sole purpose of issuing Deferred Purchase Agreements and other structured products, it has no other business activities and undertakes to at all times issue products where the relevant assets are ringfenced from cross-liability. The Issuer has granted Investors a Charge over the Hedge. The Charge is held on trust for Investors by the Security Trustee pursuant to the Security Trust Deed. There are two charges – one for each of Series I and II. There is a separate Charge for the Series of Units offered under this PDS (being Series XIIIA) and for each other Series of Instreet Link that may be issued by Instreet under other product disclosure statements from time to time. Each Charge is separate and distinct so that the Hedge for each of the Series is ringfenced and protected from cross-liability of the other Charges and Series. If the Issuer defaults on a material obligation under the DPA, the Security Trustee has the power to enforce the Charge for and on behalf of Investors and enforce the Issuer’s rights under the Hedge. The Hedge Provider will then owe its obligations (if any) under the Hedge to the Security Trustee for and on behalf of Investors in the affected Series. This means that Investors will have credit exposure to the Hedge Provider. However, Instreet will only deal with Hedge Providers who have a credit rating of Investment Grade or better. Investors should, however, be aware that a default by the Issuer under the DPA may also be a default under the Hedge (for example, if the Issuer is insolvent). If this is the case, the Hedge Provider will have the power (but not the obligation) to terminate the Hedge and calculate the termination value of the Hedge. This termination value may be significantly less than the Issue Price and may be zero. This means that Investors may receive zero and lose their Total Investment Amount even if the Charge is enforced. Please refer to Section 9 “Additional Information” for more details on the Security Trust Deed and Charge. There is also the risk that the Security Trustee may be unable to perform its obligations under the Security Trust Deed and the Charge. 20 Instreet Investment Default under the Hedge for another Series. Although there is a separate Hedge for each Series of product, if there is an insolvency event (whether by the Issuer or the Hedge Provider) under a Hedge, then the Hedges for all Series may terminate and the relevant Hedge Provider and the Issuer will have the right to set off and net the amounts payable on termination across the Hedges for all Series (where the Hedge Provider is the counterparty). Except in the case of an insolvency event, the right to set off and net payments applies separately to the Hedge for each Series. This right to set off and net will apply before the rights that an investor has under a charge and may adversely affect the amount that is recoverable by enforcing the Charge. This means that Investors may receive zero and lose their Total Investment Amount even if the Charge is enforced. Where the Issuer has numerous Hedges with one Hedge Provider, if the Issuer defaults under one of the Hedges only, the Hedge Provider has the ability to elect whether to terminate all the outstanding Hedges, or whether to suspend any payment or delivery obligations the Hedge Provider owes. Although the Hedge Provider cannot net across all the Transactions (unless the Issuer is insolvent), the early termination or payment suspension of all Hedges outstanding with that Hedge Provider may adversely impact the return investors in those affected Series may receive. This is a low risk because of the business model the Issuer has put in place which will generally mean the Issuer prepays all its obligations under the Hedge. Similarly, if the Hedge Provider defaults under one Hedge only, the Issuer has the ability to elect to terminate all outstanding Hedges or suspend its obligations to the Hedge Provider. The Security Trust Deed may terminate. Each Separate Trust created under Security Trust Deed (being one Separate Trust for each Series) will terminate when Instreet has satisfied in full its Secured Obligations in respect of that Separate Trust and the Trust Fund for that Separate Trust is distributed in full. The Security Trustee may also resign or be removed. No resignation or removal of the Security Trustee takes effect until a successor Security Trustee has been appointed. Event of Default under the Charge. If an Event of Default under the Charge occurs, it is very likely that it will also constitute an Event of Default under the Hedge. If the defaulting party is the Issuer (or Chargor) then the Hedge Provider (and counterparty to the Hedge) will have the right (but not the obligation) to terminate the Hedge. If the Hedge is terminated, it will be an early unwind and the value derived will be the early termination value of the Hedge. This may be significantly less than the value that Investors could expect on Maturity, and may be zero. Therefore, even though the Secured Property is charged for the benefit of Investors, if an Event of Default occurs and the Charge is enforced, Investors may receive nothing, depending upon the value of the Secured Property at the time of enforcement. Limited Recourse by Investors. To protect different Series from cross-liability, Investors in any one Series of product are limited in their recourse against the Issuer (if the Issuer defaults under the Units or the PDS) to only the assets (being the Hedge) subject to their Charge. Otherwise, Investors have no right of recourse against the Issuer whatsoever. Liquidity risk. You may not be able to realise your investment when you want to. Issuer Buy-Back requests are only available monthly and may not be accepted by the Issuer as determined in the Issuer’s discretion. In addition, there is no secondary market for the Units. Issue Price, Strike Level and Barrier Level for the Units. The value of the Units may fluctuate between the date you purchase Units and the Maturity Date due to market conditions. Several factors will influence the market value of the Units including (amongst other things) the prevailing price and volatility of the Reference Index. Issuer may issue additional series of Units in the future. The Issue Price, Strike Level and Barrier Level for these Units will reflect (amongst other things) the prevailing market conditions at the commencement date of those units, and which may be different to the market conditions as at the Commencement Date of Units offered under this PDS. You should invest in Units offered under this PDS only if you are satisfied that the Issue Price, Strike Level and the minimum Barrier Level of the Units is appropriate for your individual circumstances. No Investigation. No investigation or review of the underlying securities comprised in the Reference Index from time to time or the issuers of such securities, including but without limitation to any public filings made by the issuers of the underlying securities have been made for the purposes of forming a view as to the merits of an investment linked to the Reference Index. Nor is any guarantee or express or implied warranty in respect of the selection of the underlying securities comprised within the Reference Index or the methodology of calculating the Reference Index made. Investors should not conclude that the sale by the Issuer of the Units is any form of investment recommendation by it or any of its affiliates. Reference Index Rebalancing Risk. The securities comprising the Reference Index may change substantially over the life of the investment. In particular, it is possible that the initial constituent securities will increase substantially in value prior to the Maturity Date but that the Reference Index will decline in value during such period. Investors should have regard to this when considering the importance of the identity of the initial securities comprising the Reference Index. Early Maturity risk. The Units can mature early if an Early Maturity Event occurs or if an Investor requests an Issuer Buy-Back. In the event of Early Maturity, Break Costs may be incurred and the value realised by Investors for their Units may be adversely affected. The Issuer may nominate an Early Maturity Event in certain circumstances, including if its hedging arrangements are terminated early, or the Issuer has to pay an additional amount as a result of a Change of Law. Please refer to clause 5.1 of Section 10 “Terms of the Deferred Purchase Agreement” of the PDS. Conflicts of interest. Instreet Structured Investment Pty Ltd, Instreet Investment Limited and their affiliates, parent entity and subsidiaries (Instreet Group) may face possible conflicts of interest in connection with its roles as Issuer, Arranger, Calculation Agent and any other role as described in this PDS. For example, Instreet Group entities may engage in other financial service activities in relation to the Units and the Issuer, or companies in which the Reference Index or Reference Assets invest, or trade in the underlying assets that comprise the Reference Assets or Delivery Assets or financial instruments linked thereto for their own account, or for the account of others. In addition, an Instreet Group entity, as Calculation Agent, calculates all the components, formulae, payments and the value of the Units or components thereof. The Issuer does not check or confirm these calculations but accepts the calculations provided by the Instreet Group entity (in the absence of manifest error). All of these activities may result in conflicts of interest with respect to the financial interests of the Instreet Group. The Issuer has a conflicts of interest policy to ensure that it identifies and appropriately manages all conflicts of interest. The Issuer’s conflicts of interest policy relates to its monitoring, prevention and other compliance measures related to the management of conflicts of interests. At all times the Issuer attempts to prevent or manage conflicts of interest in accordance with its policy. No secondary market – liquidity risk. There is no secondary market for the Units and the Issuer BuyBack facility is at the discretion of the Issuer. Issuer Buy-Back requests may be held over and may not be executed at all. Change of Issuer. Under the terms of the Units, the Issuer has the right to transfer its rights and obligations under this PDS and the Terms. Tax Risk. The expected tax implications of entering into and exiting of the Units at Maturity may change as a result of changes in the taxation laws and interpretation of them by the Australian Tax Office (“ATO”). Please refer to Section 8 “Taxation” of this the PDS for a more detailed description of the taxation of the Units and obtain independent taxation advice that takes into account your specific circumstances. 21 2. Risks Continued Substitution of Delivery Assets. In certain circumstances, the Issuer has the right to make adjustments to or substitute the Delivery Assets or any part of them. Please refer to clauses 4.7 and 6 of Section 10 “Terms of the Deferred Purchase Agreement”. No claim against underlying asset. You do not have any interest in or rights to the underlying asset, Reference Index or Reference Asset to which the Units relate. Any claim against the Delivery Assets arise only after Maturity and upon taking physical delivery of them. Interest Rate Risk. You are exposed to the movement of interest rates whenever you redeem, transfer or sell your Units prior to the Maturity Date. Movements in interest rates will have an impact upon the value of the Units. Settlement Risk. Upon purchasing the Units, you assume settlement risks relating to the Issuer failing to deliver the Delivery Assets. The Issuer believes this risk is remote; however, a delay in delivering the Delivery Parcel and/or Sale Monies could occur. reak Costs will depend on the economic value the Issuer B achieves on the unwinding of its hedge position (i.e. the amount it achieves on the sale or unwind of the options or other financial instruments that underlie the Units). The economic value the Issuer achieves will be reliant on several factors including but not limited to market liquidity, volatility, interest rates, market prices, foreign exchange rates, and the time of Maturity. The impact of these factors are largely unknown and are dependant on movements in financial markets. Investors and their advisers can contact the Issuer and request an estimate of the Buy-Back Price (including Break Costs) that would apply to Units on any given day. The Issuer will provide estimates of Buy-Back Prices (which will include Break Costs) to Investors when it is able to accurately value the Units to enable them to determine the likely Buy-Back Price if the Investor requests an Issuer Buy-Back. However, the actual BuyBack Price at which the Issuer will buy back your Units will not be known at the time an Issuer Buy-Back request is made and may be significantly less than the estimate provided. Derivatives risk. Derivatives (such as swap agreements, certain types of deferred purchase agreements, options, futures, forward rate agreements and forward foreign exchange contracts) may be utilised by the Issuer to manage risk or to gain exposure to individual securities, currencies and investment markets. Risks associated with using derivatives include the value of the derivative failing to move in line with the underlying asset, potential illiquidity, and counterparty risk. (This is where the counterparty to the derivative contract cannot meet its obligations under the contract). Any such risk occurring is likely to adversely impact on the value of your Units. Possible conflicts of interest risk. The Issuer may retain various powers of discretion which may have a material impact on the value and performance of the Units (including the ability to declare an Early Maturity Event). Such discretions may create conflicts of interest and these discretions may be exercised (or not be exercised) in a way that could adversely affect the value of Units. Compounding of risks. An investment in the Units involves risks and should only be made after assessing the direction, timing and magnitude of potential future changes in the value of the Reference Index or Reference Asset, and the terms and conditions of the Units as contained in the PDS. More than one risk factor may have simultaneous effects with regard to the Units such that the effect of a particular risk factor may not be predictable. In addition, more than one risk factor may have a compounding effect which may not be predictable. No assurance can be given as to the effect that any combination of risk factors may have on the value of the Units. Unit and regulatory risk. The following risks may apply when investing in the Units: characteristics of the Units may change; taxation and other laws are subject to continual change and may affect the tax implications or other characteristics of your investment; different Investors compared to investing directly in underlying investments; 22 Instreet Investment there may be different tax consequences for Investors investing directly in the Reference Index or Reference Asset and those investing through an IDPS operator; Break Costs. The Issuer may deduct Break Costs in relation to Early Maturity or Issuer Buy-Back. The Break Costs will form part of the calculation of the amount you will receive if your Issuer Buy-Back request is permitted or if an Early Maturity Event occurs. Break Costs include all costs, expenses and losses incurred by the Issuer as a result of the determination of an Early Maturity Date, Buy-Back Date or other early termination, unwinding of any hedge position entered into in connection with the Units, or any loss of bargain. Break Costs could be significant and may not be in your favour. there may be different tax consequences for the Units could be, by regulation, deemed not to be securities but another class of financial product; the Reference Index or Reference Asset could be terminated; and the Issuer’s hedging arrangements could be adjusted, amended or terminated. Adjustment Events and Market Disruption Events Unexpected events can occur which can impact the Units in a way the Issuer had not anticipated, often adversely. The Issuer has certain powers under Section 10 “Terms of the Deferred Purchase Agreement” in the PDS in relation to how it can deal with such events, referred to as Adjustment Events and Market Disruption Events. Examples of these are changes in the Reference Index or in laws and regulations that would in turn affect the Units or if the Hedge was adjusted or varied. For example, if the Reference Index was terminated and stopped being calculated then Units would be effected because there is no longer a Reference Index. In this case, the Issuer might, amongst other options consider replacing the Reference Index, or otherwise adjust the terms of the Units to reflect any adjustment or change to the Hedge. If a Market Disruption Event occurs, the Issuer may adjust any terms of this PDS or the Units to reflect any change to its hedging arrangements or may delay any calculations or payments. Investors should read clause 6.2 of the Terms. Any event that is both a Market Disruption Event and an Adjustment Event may be treated as either a Market Disruption Event or Adjustment Event or both if possible. In some circumstances these events could also be classified as Early Maturity Events and lead to Early Maturity of the Units. Please refer to clause 6 “Adjustment Events and Market Disruption Events” in Section 10 “Terms of the Deferred Purchase Agreement” of the PDS and Section 6 “What happens at Maturity?” for further details. Other adjustments. If the Issuer considers that it is not possible or desirable to deal with the Adjustment Event as set out above, then the Issuer may make alterations to clause 6 of the Terms or any other term we consider appropriate. Managing your risks. You can always help manage risks. Importantly, you can manage risk by: obtaining professional investment advice to determine whether the Units suit your investment objectives, financial situation and particular needs; reading all the information in this PDS before investing in the Units and making sure you understand what it is you are investing into; obtaining professional investment advice concerning a suggested minimum investment timeframe for the Units. Please note, however, that investing for the suggested minimum investment timeframe does not entirely eliminate the risk of loss; and reviewing your investments in light of your investment objectives, financial situation and particular needs. 23 3. Worked Example, Calculating Final Value and Sensitivity Analysis 3.1 Calculating the Final Value and Delivery Parcel Scenario 1 At Maturity you will receive the Delivery Parcel (or Sale Monies if you elect to use the Agency Sale Option), with a value per Unit equal to the Final Value per Unit (less any Delivery Costs). In Scenario 1, we have assumed a decrease in the level of the Reference Index between the Commencement Date and the Maturity Date1. The process for determining the Final Value per Unit is as follows: 1. calculate the Reference Index Return. 2. subtract the Reference Index Return from the Strike Level. Step 1 – Calculate Reference Index Return The Reference Index at the Commencement Date and Maturity Date are calculated as follows: Reference Index at Commencement Date: Reference Index Closing level 3. the Final Value of each Unit is the Notional Exposure per Unit multiplied by the greater of: Issuance Observation Date 1 4,200 Issuance Observation Date 2 4,000 (i) the Strike Level less the Reference Index Return; or Issuance Observation Date 3 4,400 (ii) zero. Reference Index at Commencement Date ( 4,200 + 4000 + 4,400) The Final Value per Unit calculation can also be shown by the following formula (assuming no Barrier Event has resulted in the Units terminating early): 3 Reference Index at Maturity Date: N x Maximum [Strike Level – Reference Index Return, 0] Where “N” is the Notional Exposure per Unit. 4. calculate the number of Delivery Assets comprising your Delivery Parcel. 3.2 Assumptions The following assumptions are made in the examples set out below: an investment in Series I Units with a Barrier Level of 115% (this is the indicative Barrier Level for Series I) and a Strike Level of 95% (the Strike Level for Series II); no Early Maturity Event (other than a Barrier Event) occurs during the Investment Term; no Barrier Event occurs, except where expressly stated; no Delivery Costs are applicable; and taxation implications for Investors were = 4,200 Reference Index Closing level Maturity Observation Date 1 4,000 Maturity Observation Date 2 3,500 Maturity Observation Date 3 3,750 Reference Index at Maturity Date ( 4,000 + 3,500 + 3,750) 3 = 3,750 The Reference Index Return over the Investment Term is calculated as follows: Reference Index Closing level Reference Index at Commencement Date 4,200 Reference Index at Maturity Date 3,750 Reference Index Return 3,750 4,200 = 89% not considered. 3.3 Worked Examples The following examples illustrate how the Final Value per Unit at Maturity and the Delivery Parcel are calculated. The examples are based on an investment in Series I. An investment in Series II would operate in a similar manner, however, with a varied Strike Level and Issue Price. The Reference Index, Investment Term and Barrier Level for Series I and II are the same. Step 2 – Calculating Final Value of the Units Based on the above Reference Index Return, the corresponding Final Value per Unit would be: N x Maximum [Strike Level – Reference Index Return, 0] Where “N” is the Notional Exposure per Unit. If N = A$10, Reference Index Return = 89%, the Final Value of each Unit = 10 x Maximum [95% – 89%, 0)] = A$0.60 Any decline (or growth) in value or returns shown in these examples are fictitious and used only to demonstrate how the features of the product work. They are not a forecast, do not indicate past performance and are not a guarantee that similar returns will be achieved in the future. Returns are not guaranteed. 1 Investors should be aware that the level of the Reference Index may in fact increase over the Investment Term which will result in the full loss of their Total Investment Amount. Even where the level of the Reference Index has decreased over the Investment Term, if the Reference Index Return at Maturity is greater than or equal to the Strike Level, the entire Total Investment Amount will be lost. See the sensitivity analysis in Section 3.4 and Scenarios 2 and 3 in Section 3.3. 24 Instreet Investment In this Scenario, the Final Value is A$0.60 per Unit and you hold 5,000 units. The value of the Delivery Parcel you receive will have a Final Value of A$3,000 less any Delivery Costs. The Delivery Asset Price would be determined by reference to a basket containing equal proportions of ordinary shares in each of the following companies in the table. Let us assume also that the price of the shares in the basket as of the calculation date is as specified in column 4: Company ASX Code Weight Price at calculation date BHP Billiton Limited BHP 20% A$40.00 Commonwealth Bank of Australia CBA 20% A$52.00 Wesfarmers Limited WES 20% A$28.00 Westpac Banking Corporation WBC 20% A$23.00 Woolworths Limited In Scenario 2, we have assumed a general increase in the level of the Reference Index between the Commencement Date and the Maturity Date. Step 1 – Calculate Reference Index Return The Reference Index at the Commencement Date and Maturity Date are calculated as follows: Reference Index at Commencement Date: Reference Index Closing level Issuance Observation Date 1 4,200 Issuance Observation Date 2 4,000 Issuance Observation Date 3 4,400 Reference Index at Commencement Date ( 4,200 + 4,000 + 4,400) WOW 20% A$27.00 The number of each Delivery Assets delivered to you in your Delivery Parcel at Maturity will be: (Final Value per Unit x No. of Units Held – Delivery Costs) x weight of Delivery Asset Delivery Asset Price For example, the number of BHP Billiton Limited ordinary shares delivered will be: = (A$0.60 x 5,000) x 20% = 15 Scenario 2 A$40.00 = 15 shares of BHP Billiton Limited (i.e. A$600 worth of shares) The following table summarises the number of each Delivery Asset delivered to you in your Delivery Parcel at Maturity under this example: 3 = 4,200 Reference Index at Maturity Date: Reference Index Closing level Maturity Observation Date 1 4,000 Maturity Observation Date 2 4,300 Maturity Observation Date 3 4,600 Reference Index at Maturity Date ( 4,000 + 4,300 + 4,600) 3 = 4,300 The Reference Index Return over the Investment Term is calculated as follows: Reference Index level Reference Index at Commencement Date 4,200 Reference Index at Maturity Date 4,300 Reference Index Return (4,300 ) = 102% 4,200 Step 2 – Calculate Final Value of the Units Based on the above Reference Index Return, the corresponding Final Value per Unit would be: Weight Price at calculation date Number of Shares Delivered BHP 20% A$40.00 15 Where “N” is the Notional Exposure per Unit. Commonwealth Bank of Australia CBA 20% A$52.00 11 If N = A$10, Reference Index Return = 103%, the Final Value of Wesfarmers Limited WES 20% A$28.00 21 Westpac Banking Corporation WBC 20% A$23.00 26 Woolworths Limited WOW 20% A$27.00 22 Company ASX Code BHP Billiton Limited N x Maximum [Strike Level – Reference Index Return, 0] each Unit = 10 x Maximum [95% – 103%, , 0)] = A$0 In this scenario the Final Value per Unit is $0. Therefore, you will receive no Delivery Parcel on Maturity. As the Reference Index has increased over the Investment Term, you have lost your entire Total Investment Amount. Note: The Issuer can round off Units and Delivery Assets to the nearest whole number. If there is a fractional amount owed to you greater than A$20 then that amount will be paid to your Nominated Account. In this example, the number of shares to be delivered has been rounded off to the nearest whole number. The fractional amount owed is $48 and would be paid to your Nominated Account. 25 3. Worked Example, Calculating Final Value and Sensitivity Analysis Continued Scenario 3 In Scenario 3, we have assumed a large increase in the level of the Reference Index between the Commencement Date and the Maturity Date. The Reference Index at the Commencement Date is calculated as follows: Reference Index at Commencement Date: Reference Index Closing level Issuance Observation Date 1 4,200 Issuance Observation Date 2 4,000 Issuance Observation Date 3 4,400 Reference Index at Commencement Date ( 4,200 + 4,000 + 4,400) 3 = 4,200 Assume that the Barrier Level was set at 115%. The Barrier Level is a percentage of the Reference Index at the Commencement Date (subject to averaging over the Issuance Observation Dates). Therefore, a Barrier Event occurs if the Reference Index closes at or above 4,830 (i.e. 115% * 4200) on any Exchange Business Day during the Investment Term after the final Issuance Observation Date. If a Barrier Event occurs, the Units terminate immediately and do not continue until Maturity. Investors receive nothing and therefore lose their entire Total Investment Amount. If the Reference Index closed at 4,900 on an Exchange Business Day during the Investment Term after the final Issuance Observation Date, the Units would terminate early due to the occurrence of a Barrier Event. Investors would receive nothing and therefore lose their entire Total Investment Amount. As the Units have terminated, any further movements in the Reference Index are irrelevant. For example, even if, following the Barrier Event, the Reference Index decreased to below the Strike Level at Maturity Investors would not receive any Delivery Parcel or other payment. 3.4 Return Analysis at Maturity At Maturity the Issuer will calculate the Final Value per Series by determining the Reference Index Return and subtracting this from the Strike Level and, if this product is greater than zero, multiplying it by A$10.00, being the Notional Exposure. 1. 1. If the Reference Index Return is greater than or equal to zero you will lose your Total Investment in the Units, being the Issue Price per Unit, and will receive no payment from the Issuer. However, you can lose no more than this and you will not be required to make any additional payments or margin calls to the Issuer. 26 Instreet Investment 2. If the Reference Index Return is less than zero, the Final Value of the Units, will be calculated as the Strike Level-Reference Index Return multiplied by the Notional Exposure. If the Reference Index is not below the Strike Level you will lose your Total Investment in the Units, being the Issue Price per Unit, and will receive no payment from the Issuer. 3. If the Reference Index Return is less than zero and also less than the Break-even Level, the Final Value of the Units will be calculated as the Strike Level – Reference Index Return multiplied by the Notional Exposure, this will be less than the Issue Price per Unit. he following illustrations are to demonstrate the Final T Value per Unit and return of investment based on different levels of Reference Index Return at Maturity for each relevant Series, and are provided for illustrative purposes only. The following sensitivity analysis assumes that no Barrier Event occurs during the Investment Term. If the Reference Index closes at or above the Barrier Level on any Exchange Business Day during the Investment Term after the final Issuance Observation Date, the Units will terminate early and investors will receive nothing. When a Barrier Event occurs, the Units do not continue to Maturity and therefore the Reference Index Return at Maturity is not relevant. This means that if there is high volatility in the market, a Barrier Event may occur during the Investment Term and then subsequently the Reference Index may decrease to a point below the Strike Level by the Maturity Date. In this case, the Units will have terminated early and no Delivery Parcel will be delivered following the Maturity Date, even though the Reference Index fell below the Strike Level. The following illustrations do not reflect the value of the Units prior to Maturity, or what you would receive in the case of Early Maturity or Issuer Buy-Back. The information in the “Sensitivity Analysis” table is for your information only. A variety of market factors and assumptions may affect this analysis, and this analysis does not reflect all possible loss scenarios. There is no certainty that the parameters and assumptions used in this analysis can be duplicated with actual trades. For example, a Barrier Event may occur and the Reference Index Return at Maturity is irrelevant since the Units will terminate early. Any growth (or decline) in value or returns shown in this example are fictitious and used only to demonstrate how the features of the product work. They are not a forecast, do not indicate past performance and are not a guarantee that similar returns will be achieved in the future. Returns are not guaranteed. 3.4.1 Return Analysis at Maturity – Series I Sensitivity Analysis Table – Series I Reference Index Return at Maturity Investment Amount per Unit ($) Notional Exposure per Unit ($) % return on Notional Final Value per Unit ($) Net Gain/Loss per Unit ($) Return on Investment (%) 15.0% 0.86 10.00 0.00% 0.00 –0.86 –100.0% 10.0% 0.86 10.00 0.00% 0.00 –0.86 –100.0% 5.0% 0.86 10.00 0.00% 0.00 –0.86 –100.0% 0.0% 0.86 10.00 0.00% 0.00 –0.86 –100.0% –5.0% 0.86 10.00 0.00% 0.00 –0.86 –100.0% –6.0% 0.86 10.00 1.00% 0.10 –0.76 –88.4% –7.0% 0.86 10.00 2.00% 0.20 –0.66 –76.7% –8.0% 0.86 10.00 3.00% 0.30 –0.56 –65.1% –53.5% –9.0% 0.86 10.00 4.00% 0.40 –0.46 –10.0% 0.86 10.00 5.00% 0.50 –0.36 –41.9% –10.6% 0.86 10.00 5.60% 0.56 –0.30 –34.9% –12.0% 0.86 10.00 7.00% 0.70 –0.16 –18.6% –13.0% 0.86 10.00 8.00% 0.80 –0.06 –7.0% –13.6% 0.86 10.00 8.60% 0.86 0.00 0.0% –15.0% 0.86 10.00 10.00% 1.00 0.14 16.3% –20.0% 0.86 10.00 15.00% 1.50 0.64 74.4% –25.0% 0.86 10.00 20.00% 2.00 1.14 132.6% –30.0% 0.86 10.00 25.00% 2.50 1.64 190.7% –35.0% 0.86 10.00 30.00% 3.00 2.14 248.8% –40.0% 0.86 10.00 35.00% 3.50 2.64 307.0% –10.0% 1.49 10.00 0.00% 0.00 –1.49 –100.0% –15.0% 1.49 10.00 0.00% 0.00 –1.49 –100.0% –20.0% 1.49 10.00 0.00% 0.00 –1.49 –100.0% –25.0% 1.49 10.00 0.00% 0.00 –1.49 –100.0% –30.0% 1.49 10.00 0.00% 0.00 –1.49 –100.0% –35.0% 1.49 10.00 0.00% 0.00 –1.49 –100.0% –40.0% 1.49 10.00 0.00% 0.00 –1.49 –100.0% Barrier Level on Investment Loss of entire Investment Amount Break-even 4.00 3.50 Final Value per Unit ($) 3.00 2.50 2.00 1.50 1.00 0.50 0.00 –0.50 –50.0% –40.0% –30.0% –20.0% –10.0% 0.0% 10.0% 20.0% Reference Index Return at Maturity 27 3. Worked Example, Calculating Final Value and Sensitivity Analysis Continued 3.4.2 Return Analysis at Maturity – Series II Sensitivity Analysis Table – Series II Change in Reference Index at Maturity Investment Amount per Unit ($) Notional Exposure per Unit ($) % return on Notional Final Value per Unit ($) Net Gain/Loss per Unit ($) 15.0% 1.06 10.00 0.00% 0.00 –1.06 –100.0% 10.0% 1.06 10.00 0.00% 0.00 –1.06 –100.0% 5.0% 1.06 10.00 0.00% 0.00 –1.06 –100.0% 0.0% 1.06 10.00 0.00% 0.00 –1.06 –100.0% –5.0% 1.06 10.00 5.00% 0.50 –0.56 –52.8% –6.0% 1.06 10.00 6.00% 0.60 –0.46 –43.4% –7.0% 1.06 10.00 7.00% 0.70 –0.36 –34.0% –8.0% 1.06 10.00 8.00% 0.80 –0.26 –24.5% –9.0% 1.06 10.00 9.00% 0.90 –0.16 –15.1% –10.0% 1.06 10.00 10.00% 1.00 –0.06 –5.7% –10.6% 1.06 10.00 10.60% 1.06 0.00 0.0% –12.0% 1.06 10.00 12.00% 1.20 0.14 13.2% –13.0% 1.06 10.00 13.00% 1.30 0.24 22.6% –13.6% 1.06 10.00 13.60% 1.36 0.30 28.3% –15.0% 1.06 10.00 15.00% 1.50 0.44 41.5% –20.0% 1.06 10.00 20.00% 2.00 0.94 88.7% –25.0% 1.06 10.00 25.00% 2.50 1.44 135.8% –30.0% 1.06 10.00 30.00% 3.00 1.94 183.0% –35.0% 1.06 10.00 35.00% 3.50 2.44 230.2% –5.0% 1.49 10.00 0.00% 0.00 –1.49 –100.0% –10.0% 1.49 10.00 0.00% 0.00 –1.49 –100.0% –15.0% 1.49 10.00 0.00% 0.00 –1.49 –100.0% –20.0% 1.49 10.00 0.00% 0.00 –1.49 –100.0% –25.0% 1.49 10.00 0.00% 0.00 –1.49 –100.0% –30.0% 1.49 10.00 0.00% 0.00 –1.49 –100.0% –35.0% 1.49 10.00 0.00% 0.00 –1.49 –100.0% –40.0% 1.49 10.00 0.00% 0.00 –1.49 –100.0% 4.50 4.00 3.50 Final Value per Unit ($) 3.00 2.50 2.00 1.50 1.00 0.50 0.00 –0.50 –50.0% –40.0% –30.0% –20.0% –10.0% 0.0% Reference Index Return at Maturity 28 Return on Investment (%) Instreet Investment 10.0% 20.0% Barrier Level on Investment Loss of entire Investment Amount Break-even 4. Reference Index Disclaimer The Units are not sponsored, endorsed, sold or promoted by Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. (“S&P”) or its third-party licensors. Neither S&P nor the Australian Securities Exchange (“ASX”) makes any representation or warranty, express or implied, to the owners of the Units or any member of the public regarding the advisability of investing in securities generally or in the Units particularly or the ability of the S&P ASX 200 Index (the “Index”) to track general stock market performance. S&P’s and ASX’s only relationship to the Licensee is the licensing of certain trademarks and trade names of S&P and ASX, and of the Index which is determined, composed and calculated by S&P without regard to the Licensee or the Units. S&P and ASX have no obligation to take the needs of the Licensee or the owners of the Units into consideration in determining, composing or calculating the Index. S&P and ASX are not responsible for and have not participated in the determination of the prices and amount of the Units or the timing of the issuance or sale of the Units or in the determination or calculation of the equation by which the Units are to be converted into cash. S&P and ASX have no obligation or liability in connection with the administration, marketing or trading of the Units. NEITHER S&P, ITS AFFILIATES NOR ASX GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS OR COMPLETENESS OF THE INDEX OR ANY DATA INCLUDED THEREIN OR ANY COMMUNICATIONS, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATIONS (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P, ITS AFFILIATES AND ASX SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P AND ASX MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE MARKS, THE INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL S&P, ITS AFFILIATES OR ASX BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE. The “S&P” and “S&P Indices” are trademarks of Standard & Poor’s and have been licensed for use by the Issuer. The “ASX” is a trademark of the Australian Securities Exchange and has been licensed for use by S&P. 29 5. Parties to the Offer Issuer and Arranger Security Trustee and Chargee The Issuer is an Australian incorporated special purpose vehicle established by Instreet Investments Limited in 2009 for the purpose of issuing structured products. The assets of each Series of product will be ringfenced by granting Investors in that Series a Charge over the Issuer’s Hedge for that Series. AET Structured Finance Services Pty Limited (ABN 12 106 424 088) is appointed under the Security Trust Deed to act as Security Trustee. AET Structured Finance Services Pty Limited (ABN 12 106 424 088) is part of Australian Wealth Management Limited, which in turn is part of IOOF Holdings Ltd, a leading provider of wealth management products and services in Australia, including trustee services. The Issuer has granted Investors a Charge over the Hedge which is held on trust for Investors by the Security Trustee pursuant to the Security Trust Deed. The role of the Security Trustee is to enforce the Charge on behalf of the Investors if the Issuer defaults on their obligations under the DPA. The role of the Security Trustee is set out in the Security Trust Deed and Deed of Charge which are available on request from Instreet. Please refer to Section 9 “Additional Information” for summaries of the Security Trust Deed and Deed of Charge. The Arranger is Instreet Investments Limited. Issuer Instreet Structured Investment Pty Limited (ABN 82 140 407 558) was established for the sole purpose of issuing Deferred Purchase Agreements and other structured products. It has no other business activities. As the Issuer has no creditworthiness a corporate structure which has been established includes a Security Trustee to pass through the credit rating of the Hedge Provider, who is providing the Hedge to the Investor in the DPA. The Issuer has granted Investors a Charge over the Hedge. The Charge is held on trust for Investors by the Security Trustee pursuant to the Security Trust Deed. There are two charges – one for each of Series I and II. Each Charge is separate and distinct so that the Hedge for each of the Series is ringfenced and protected from cross-liability of the other Charges and Series. The Issuer undertakes to only ever issue structured products which have the relevant assets ringfenced. If the Issuer defaults on its obligations under the DPA, the Security Trustee has the power to enforce the Charge for and on behalf of Investors. The Hedge Provider will then owe its obligations under the Hedge to the Security Trustee for and on behalf of Investors in the affected Series. This means that Investors will have credit exposure to the Hedge Provider. However, Instreet will only deal with Hedge Providers who have a credit rating of Investment Grade or better. All major administration functions, such as registry are outsourced to third party providers. The issuer is wholly owned by Instreet Investment Limited (Arranger). Arranger Instreet Investment Limited (ACN 128 813 016) was established in 2007 to design and distribute products to the retail market via the advisor community. Since 2007 Instreet has grown rapidly with offices in NSW, Victoria and Queensland. Instreet is an authorised representative (ASIC Authorised Representative No.322612) of EA Financial, LP under Australian Financial Services Licence No. 246801. EA Financial, LP is responsible for overseeing the services of Instreet but does not guarantee or otherwise provide assurance in respect of the obligations of Instreet or the Issuer. Instreet Investment Limited will also provide back-office administration and accounting. 30 Instreet Investment Registrar Link Market Services Limited (ABN 54 083 214 537) (Link) a provider of registry services and technology to financial market participants in Australasia. Link is a member of the Pacific Equity Partners (PEP) portfolio. Link offers a variety of services to its client base including capital markets, company secretarial services, meeting and telephone services, managed fund outsourcing, investor relations and advisory services. The Issuer has appointed Link to provide all back-office fund processes including investor interface, registry, investment reporting. The Issuer maintains strict controls, including detailed and regular reporting processes. Ringfencing arrangements The Units in each Series issued under this PDS are ringfenced. The Issuer undertakes to only ever issue financial products (including further Series of Link and any other financial products) that are ringfenced. The ringfencing structure is designed to provide protection to Investors by ensuring the relevant assets for a particular Series are available only to Investors in that Series in the case of default by the Issuer under the terms of the Units, and are not affected by any defaults in relation to other Series or financial products. In this way, the relevant assets for each Series are ringfenced from cross-liability. The ringfencing is achieved in a number of ways: a) at the Investor level, through limited recourse; b) at the Issuer level: (i) by an undertaking to engage only in the business of issuing financial products that are in turn ringfenced; (ii)by granting a Charge over the Hedge in favour of Investors. c) at the Hedge level by ensuring that each Hedge is (generally) separate and distinct from other Hedges and that setoff applies only on the insolvency of the Issuer or the Hedge Provider. At the Investors Level Investors in the Units have limited recourse to the Issuer i.e. Investors in one Series of product are limited in recourse against the Issuer to only those assets subject to the Charge described below. (Investors have no other right of recourse against the Issuer). Refer to “Limited Recourse by Investors” in Section 2 “Risks” for more information. At the Issuer Level In relation to each Series, the Issuer grants a Charge over the Secured Property to Investors. The Secured Property for each Series includes Investors’ Application monies and the Hedge which the Issuer acquires in order to hedge its obligations in respect of the Units in that Series. Please refer to Section 9 “Additional Information” for a detailed description of the Charge. The Charge is held on trust for Investors by the Security Trustee pursuant to the Security Trust Deed. Please refer to Section 9 “Additional Information” for a detailed description of the Security Trust Deed. There is an Event of Default under the Charge and the Charge becomes enforceable in certain circumstances including where the Issuer fails to perform or observe a material obligation under the Terms of the Units or if the Issuer becomes insolvent. See Section 9 “Additional Information” for a full list of Events of Default under the Charge. When the Charge becomes enforceable, the Security Trustee has the power to enforce the Charge for and on behalf of Investors in the affected Series. The benefit of the obligations of the Hedge Provider under the Hedge in respect of the Units in that Series will be available as security to the Security Trustee for and on behalf of Investors in the affected Series, and the Security Trustee may directly enforce the rights of the Issuer under the Hedge in accordance with the Charge. This means that Investors ultimately have credit exposure to the Hedge Provider (to the extent of any amounts payable by the Hedge Provider under the Hedge in respect of the Units in that Series), and the Issuer. To this extent, Investors are protected from a default by the Issuer in the performance of its obligations in respect of the Units. However, there is the risk that either (or both) of the Security Trustee and the Hedge Provider will be unable to meet their obligations under the Security Trust Deed and Hedge, respectively. Please refer to “Creditworthiness of the Issuer, Hedge Provider and Security Trustee” in Section 2 “Risks”. At the Hedge Level The Issuer has negotiated with the Hedge Providers to ensure that each Hedge entered into for an individual Series is treated as a separate and distinct transaction from any other Hedge, and that amounts due under a Hedge in respect of the Units in that Series are not netted during the term of that Hedge against amounts due under a Hedge entered into with the same Hedge Provider in respect of the Units in any other Series. The Issuer has also negotiated for Hedge Providers to acknowledge the Charge and the Security Trust Deed and to acknowledge that the Security Trustee has the power to enforce the Issuer’s rights under the Hedge if the Charge is enforced. Imperfect ringfencing Despite the ringfencing, there are some circumstances in which events in relation to one Series will impact on other Series. These are as follows: (a)under the contract between the Issuer and one particular Hedge Provider which establishes the Hedge (Hedge Contract), if there is a event of default or potential event of default in respect of the Issuer or the Hedge Provider, then the obligations of the other party under the Hedge Contract can be suspended until the event of default or potential event of default ceases to exist. If an event of default or potential event of default occurs with respect to the Issuer under the Hedge Contract, the Hedge Provider may be entitled to suspend its obligations under that Hedge Contract for an indefinite period of time. Some events of default and potential events of default relating to the Issuer may be of a nature that affects more than one Hedge Contract, or an event of default relating to the Issuer under one Hedge Contract may be of a nature that triggers an event of default or potential event of default relating to the Issuer under another Hedge Contract and, where this occurs, the Hedge Provider may be entitled to suspend its obligations under more than one Hedge Contract with the Issuer. In particular, if a Default under Specified Transaction with a Hedge Provider occurs with respect to the Issuer, then this will be an event of default under all the Hedges with that particular Hedge Provider and such Hedge Provider may suspend its obligations under all its Hedge Contracts with the Issuer, or if a Bankruptcy event of default occurs with respect to the Issuer, then this will be an event of default under all the Hedges and each Hedge Provider may suspend its obligations under all its Hedge Contracts. Any such suspension of the obligations of a Hedge Provider could materially adversely affect Investors. 31 5. Parties to the Offer Continued (b)under the Hedge Contract between the Issuer and a particular Hedge Provider, if there is an event of default in respect of the Issuer or the Hedge Provider or if certain specified termination events occur, the Hedge Contract can be terminated – payment obligations in relation to all transactions governed by that Hedge Contract between those two parties are terminated, and a single net amount is calculated as due from one party to the other. As each Hedge Contract will be deemed to be a separate Hedge Contract for each transaction (corresponding to each Series), each separate Hedge Contract may be terminated only if an event of default or termination event occurs under that particular Hedge Contract. However, some events of default and termination events relating to the Issuer may be of a nature that affects more than one Hedge Contract at the same time, or an event of default relating to the Issuer under one Hedge Contract may be of a nature that triggers an event of default relating to the Issuer under another Hedge Contract and, where this occurs, then the Hedges for all Series (where the Issuer and the particular Hedge Provider are counterparties) and, depending on the nature of the event of default, the Hedges for all Series with other Hedge Providers may be terminated by one or more Hedge Providers. In particular, if a Default under Specified Transaction with a Hedge Provider occurs with respect to the Issuer, then this will be an event of default under all the Hedges with that particular Hedge Provider and such Hedge Provider may terminate all its Hedge Contracts with the Issuer, or if a Bankruptcy event of default occurs with respect to the Issuer, then this will be an event of default under all the Hedges and each Hedge Provider may terminate all its Hedge Contracts with the Issuer. If there is an event of default in respect of the Issuer, the Hedge Provider is not under any obligation to terminate any of the Hedges. Where some events of default and termination events affect more than one Hedge Contract, the Hedge Provider may choose which (if any) of the Hedges will be terminated. If there is an event of default in respect of the Issuer, the Hedge Provider is not under any obligation to terminate any of the Hedges. Where some events of default and termination events affect more than one ISDA Contract, the Hedge Provider may choose which (if any) of the Hedges will be terminated. 32 Instreet Investment (c)If a Bankruptcy event of default occurs relating to the Issuer a Hedge Provider may set off any obligation of the Issuer owing to that Hedge Provider (under the Hedge Contract or otherwise) against any obligations of the Hedge Provider owing to the Issuer (including under other Hedge Contracts). This right of setoff may be effected before or after termination of the Hedge Contract and across a number of Series. Should such setoff occur following a termination of more than one Hedge Contract with a particular Hedge Provider, a single amount will be received by the Security Trustee on behalf of Investors in relation to a number of Series. There is a method for allocating the amount received amongst the Investors for each Series – but Investors have no recourse to the Security Trustee if they disagree with how this is allocated. (Please refer to the description of the Security Trust Deed in Section 9 “Additional Information”.) This right of setoff is in addition to statutory rights of setoff of the Hedge Provider in case the Issuer is an insolvent company that is being wound up. This risk is also described further in “Default under the Hedge for another Series” in Section 2 “Risks”. (d)If an Hedge Contract is terminated then one single termination amount (called the Close-out Amount) will be calculated as due from one party to the other under that Hedge Contract. If a particular Hedge Provider elects to terminate more than one Hedge Contract for the Hedges for more than Series (where the Issuer and the particular Hedge Provider are counterparties) across all or more than one outstanding transaction between the Issuer and that Hedge Provider, a Close-out Amount would be calculated as due from one party to the other separately under each Hedge Contract. If a Bankruptcy event of default occurs in respect of the Issuer, the Hedge Provider has the right to set off any amounts it owes to the Issuer against any other amounts the Issuer owes the Hedge Provider whether under one or more Hedge Contracts for one or more Series of products. The Close-out Amount calculation in respect of the Hedge for a particular Series is likely to be less than the Final Value for that Series, may be less than the Issue Price for that Series and may even be zero. 6. What happens at Maturity? Notice of Maturity Prior to the Maturity Date you will be sent a Notice of Maturity informing you that Maturity of the Units is approaching. Upon Maturity you can either: 1. accept physical delivery of the Delivery Parcel; or 2. use the Agency Sale Option under which the Issuer will accept physical delivery of your Delivery Parcel, sell the Delivery Parcel then pay you the Sale Monies. If you wish to accept physical delivery of the Delivery Parcel you do not need to do anything. Physical delivery of the Delivery Parcel is the default option. If you want to use the Agency Sale Option and receive Sale Monies, you need to make this election in the Notice of Maturity. Delivery Parcel and substitution To facilitate settlement, the Issuer will calculate the Delivery Parcel for the Units using the Final Value. The Delivery Parcel is the number of Delivery Assets to be delivered by the Issuer or its nominee to you on Maturity. However, you should note that the Issuer has the right to change or substitute the Delivery Assets if the nominated Delivery Asset cannot be delivered due to any legal or regulatory restriction relating to the Delivery Asset (including cessation or Suspension from listing) or the Issuer, including but not limited to trade limitations resulting from internal conflict arrangements. In these circumstances, the Issuer will select another security which is a constituent of the S&P/ASX 200 Index as the substitute Delivery Asset or, if a basket of Delivery Assets is being delivered, deliver the remaining Delivery Assets unaffected by the event. In selecting the substitute Delivery Asset, the Issuer will have regard to a number of factors including the industry category, price, liquidity and volatility of the substitute Delivery Asset with reference to the nominated Delivery Asset. Physical delivery Once the Units mature and you accept delivery of the Delivery Parcel you will no longer have exposure to the Reference Index. Instead, you will hold a parcel of ASX listed securities. You will need to carefully consider whether an investment in those shares will be a suitable investment for you to hold beyond Maturity. The Issuer will purchase the Delivery Assets constituting your Delivery Parcel and register those securities on the issuer-sponsored sub-register (i.e. as an issuer-sponsored holding) in your name. You may at a later stage transfer the securities into your own CHESS account by providing your broker with your Holder Identification Number. The Issuer or its nominee will deliver the Delivery Assets specified in the Delivery Parcel (less any Delivery Costs) on the Settlement Date. Agency Sale Option If you form the view that you do not wish to hold the Delivery Assets after the Maturity Date, you can elect for the Issuer to sell the Delivery Assets on your behalf and receive Sale Monies via the Agency Sale Option. Under the Agency Sale Option, the Issuer or its agent will accept physical delivery of the Delivery Assets on your behalf and subsequently arrange for their sale. The Issuer will then pay you the Sale Monies. The total Sale Monies you receive will be the amount the Issuer receives from the sale of your Delivery Assets less any relevant Delivery Costs associated with the sale. To use the Agency Sale Option and receive the Sale Monies you must return the Notice of Maturity to the Issuer at least 20 Business Days prior to the Maturity Date. Sale Monies will be paid to your Nominated Account or paid by cheque within 10 Exchange Business Days of the Settlement Date or as soon as reasonably practicable thereafter. See clause 4 of Section 10 “Terms of the Deferred Purchase Agreement” of the PDS for further details about the Agency Sale Option. Fractions If the Delivery Parcel includes a fraction of a Delivery Asset which is valued at more than A$20.00, the Issuer will transfer the AUD fractional amount into your nominated account or pay it to you by cheque within 10 Exchange Business Days after the Settlement Date or as soon as reasonably practicable thereafter. Early Maturity The Units can mature early if an Early Maturity Event occurs (including the occurrence of a Barrier Event) or if an Investor requests an Issuer Buy-Back. Issuer Buy-Backs are discussed in Section 7 “Sale of Units before Maturity – Issuer Buy-Back” of the PDS. Early Maturity Events generally arise in circumstances which prevent the Issuer being able to hedge or deliver on its obligations under the Terms and conditions of the Units. Early Maturity Events could include (but are not limited to), for example, circumstances where the Reference Index ceases to exist; a Change of Law occurs that prevents the normal operation of the Units or results in the Issuer having to pay additional amounts in relation to the Units. If an Early Maturity Event occurs, the Issuer has the discretion to call Early Maturity or allow the Units to continue. An Early Maturity may lead to investors suffering losses and bearing various costs associated with the Early Maturity. If the Issuer decides to call Early Maturity, they will specify in the Early Notice of Maturity whether Investors will receive the Delivery Parcel (with a value equal to the Early Maturity Value) or the Termination Payment. If a Barrier Event occurs, the Units will terminate early, the Early Maturity Value and the Termination Payment will be zero and investors will receive nothing. Therefore, if a Barrier Event occurs, investors will lose their entire Total Investment Amount. Please see clause 5 of Section 10 “Terms of the Deferred Purchase Agreement” in this PDS for more details. 33 7. Sale of Units before Maturity – Issuer Buy-Back Can I sell my Units prior to Maturity? Cash settlement only Investors may request the Issuer to buy back their Units (“Issuer Buy-Back”). In the event of Issuer Buy-Back you will be deemed to have elected the Agency Sale Option and will receive the cash amount of the Buy-Back Price. While the Units are designed as a “buy and hold” investment, you may have the opportunity to sell to the Issuer your Units on each “Buy-Back Date” as specified in this PDS if the Issuer agrees. It is not recommended that Investors invest in Units if they intend to have the Issuer buy back the Units as the Delivery Costs and Break Costs may be significant. You may request that the Issuer buy back the full amount of your Units by requesting from the Issuer, completing and then lodging an Issuer Buy-Back Form. Issuer Buy-Back Forms must be received by the Issuer no later than 10 Business Days prior to the Buy-Back Date. The Issuer’s contact details are available in the Directory at the back of this PDS. Once the Issuer Buy-Back Form is lodged, the request for an Issuer Buy-Back is irrevocable. The Issuer may at its absolute discretion accept, reject or defer a request to buy back your Units. The Issuer shall inform you if it defers or rejects your Buy-Back request. The amount you receive (the“Buy-Back Price”) takes into account the factors that affect the value of the Units and any Delivery Costs, and any Break Costs and may include a bid-offer spread. Break Costs include all costs, expenses and losses incurred by the Issuer as a result of the determination of an Early Maturity Date, Buy-Back Date or other early termination, unwinding of any hedge position entered into by the Issuer in connection with the Units, or any loss of profits by reason of such an early termination. Please refer to Section 1 “Product Summary” under the heading “Indicative Prices” for more information on factors that affect the Break Costs and to “Break Costs” in Section 2 “Risks”. Therefore, the actual Buy-Back Price at which the Issuer will buy back your Units will not be known at the time the request is made or accepted, although we will provide you with an estimate. 34 Instreet Investment Execution of Issuer Buy-Back Form requests and the actual Buy-Back Price will be notified to Investors by way of the Settlement Notice, which will be sent to Investors as soon as reasonably practicable after the relevant Buy-Back Date. You should read clause 5.3 of Section 10 “Terms of the Deferred Purchase Agreement” of the PDS carefully to understand your rights and obligations if you request an Issuer Buy-Back. Indicative Valuations The Issuer will publish monthly indicative valuations for the Units and provide this information to certain market data service providers. Investors should note that these valuations can change at any time and as such, do NOT indicate the Buy-Back Price of Units that may apply. Investors may contact the Issuer at 1300 954 678 to request an estimated Buy-Back Price before proceeding with an Issuer Buy-Back. Investors acknowledge that the actual Buy-Back Price may differ significantly from the estimated Buy-Back Price. Secondary Market As the Units will not be listed or displayed on any securities exchange such as the ASX, there may be no secondary market for the Units. Even if a secondary market for the Units develops, it may not provide significant liquidity or trade at prices advantageous to you. Accordingly, you may receive a price that is significantly less than the Issue Price of your Units if you sell those Units to the Issuer prior to the Maturity Date. 8. Taxation This summary has been prepared for Australian investors only for the purposes of inclusion in the Product Disclosure Statement dated 22 April 2010 (“PDS”) in relation to Instreet Link DS Series I & II – S&P ASX 200 Index Linked DPA (the “Units”). Views as set out in this summary are based on the terms, as set out in the PDS, of the Units which will be issued by Instreet Structured Investment Pty Ltd (the “Issuer”). This summary provides a general outline of the main Australian income tax, GST and stamp duty implications arising for an investor who: 1. will hold the Units until Maturity and will hold the ASX listed ordinary shares which are related to their Units post Maturity i.e. without using the Agency Sale Option (those ASX listed ordinary shares hereinafter referred to as “Delivery Assets”); 2. will hold the Units and the Delivery Assets in their own capacity as capital assets; and 3. has quoted their Tax File Number to the Issuer at the time of lodgement of their application form. Investors who are engaged in the business of trading or investment of securities, who acquire the Units for the purpose of resale at a profit or banks, insurance companies, tax-exempt organisations or superannuation funds may be subject to special or different tax consequences peculiar to their circumstances which are not discussed in this opinion. Additionally, the tax discussion outlined here is not relevant to an investor who assigns their Units to a third party prior to Maturity or does not receive delivery of the Delivery Assets. The taxation of investors who invest in the Units through a platform or Investor Directed Portfolio Service (“IDPS”) will be affected by the arrangements governing the platform or IDPS. Such investors should refer to the information provided by the platform provider or IDPS operator in relation to the tax implications of investing through the platform or IDPS. The following discussion is based on Australian law and administrative practice as at 9 December 2009. Investors should be aware that the ultimate interpretation of taxation law rests with the Courts and that the law, and the way the Commissioner of Taxation (“Commissioner”) administers the law, may change at any time. This statement is necessarily general in nature and does not take into account the specific taxation circumstances of each individual investor. Investors should seek independent professional taxation advice in relation to their own particular circumstances before making any investment decision. References in this section to the “1936 Act” and the “1997 Act” are references to the Income Tax Assessment Act 1936 (Cth) and the Income Tax Assessment Act 1997 (Cth) respectively. Baker & McKenzie is not involved in the marketing of Units and its role should not be interpreted to mean that it encourages any party to invest. Security Trust A proportion of the net taxable income (if any) of each Security Trust created for each Series may be included in the assessable income of the relevant investors on 30 June each year. Whether or not a Security Trust will have net taxable income in a year of income will be dependent on whether the Deed of Charge is enforced by the Security Trustee. Each investor’s proportion of the net taxable income (if any) of the relevant Security Trust will be determined by the number of Units held by an investors in a particular Series. Should the Deed of Charge be enforced by the Security Trustee it is recommended that investors seek independent professional taxation advice. Capital Gains Tax (“CGT”) Delivery of Delivery Assets In making an investment in the Units, an investor has contracted to purchase from the Issuer the Delivery Assets. In Taxation Determination TD 2008/22, the Commissioner states that an investor’s rights under financial products similar to a Unit constitutes a discrete CGT asset and the delivery of the Delivery Assets on Maturity triggers CGT event C2 for the investor. Based on this interpretation of the CGT rules, an investor makes a capital gain on Maturity equal to the difference between the market value of the Delivery Assets (determined at that time) less the investor’s cost base in the Unit. We consider that an investor’s cost base in the Unit should include: 1. the money the investor pays to acquire the Unit (i.e. the Issue Price); 2. the incidental costs of acquisition and disposal; and 3. the costs of ownership of the Unit (e.g. interest which an investor incurs as a result of borrowing funds to acquire the Unit where the interest is not otherwise allowable as a tax deduction). 35 8. Taxation Continued Alternatively, investors may make a capital loss equal to the difference between the investor’s reduced cost base in the Units and the market value of the Delivery Assets (determined at that time). The reduced cost base of a Unit should include 1, 2 but not 3 (as listed above). However our preferred view is that any gain will be reduced to the extent the gain is recognised as ordinary income as discussed below. Alternate tax treatment In light of the features of the Unit, in particular the fact that the 11 month term of this investment is less than the 3–5 year term specified by the Commissioner in TD 2008/22 from which the above CGT analysis is based, there is a risk that the Commissioner will consider that the Unit falls outside the scope of the TD 2008/22. Should the Commissioner form this view, the gain derived by an investor from investing in this product could be assessable as ordinary income as a gain from a profit making scheme at the time the Delivery Assets are sold (discussed below). This is likely to be the case if the investor relies on the Agency Sale Option or transfers the Unit during its term. It is our preferred view that the gains should be recognised as ordinary income which would reduce the amount assessable under the CGT provisions discussed above. This ensures that the same amount is not taxed twice. Ultimately, the risk of this tax treatment will depend on the investor’s own circumstances and should be discussed with a tax advisor. Disposal of Delivery Assets The Delivery Assets are also CGT assets. Any subsequent disposal of the Delivery Assets by an investor should constitute a CGT event at the time the contract for disposal is executed. An investor should be assessed on any capital gain made from the CGT event. The capital gain should be the difference between the capital proceeds received on disposal less the cost base which the investor has in the Delivery Assets. If the capital proceeds received by an investor are less than the reduced cost base that the investor has in the Delivery Assets, then the investor should make a capital loss. Capital losses can be offset against taxable capital gains made by an investor but not against other types of income. The capital proceeds which an investor receives will be the cash or other property the investor receives or is entitled to receive when the investor disposes of the Delivery Assets. If the delivery of the Delivery Assets is a CGT event (per TD2008/22), then the investor’s cost base in the Delivery Assets should be their market value at the time of delivery. CGT discount provisions An investor that is an individual may claim the benefit of the CGT discount (as described above) on any capital gain made on the disposal of the Delivery Assets where they have held the Delivery Assets for more than 12 months. In TD 2008/22 the Commissioner has stated that for CGT purposes an investor acquires the Delivery Assets at the time of delivery. Accordingly, the Commissioner reasons that the 12-month holding requirement will be counted from this date. Alternate tax treatment If the alternate tax treatment referred to above applies, and the gain is seen as a revenue gain, the entire gain will be assessable as ordinary income at the time the Delivery Assets are sold (and the discount CGT provisions referred to above will be irrelevant). Agency Sale Option At Maturity an investor can choose to accept delivery of the Delivery Assets or alternatively enter into the Agency Sale Option. The capital gains tax consequences of an investor using the Agency Sale Option are the same as outlined above in relation to the consequences of an investor selling Delivery Assets which they are received on Maturity. If an investor purchases a Unit and intends from the outset to use the Agency Sale Option or if during their holding of the Unit their intention to hold the Unit (and the Delivery Assets which they may acquire under the Unit) for capital purposes alters, then an investor may be taxed under the ordinary income tax provisions on any gain or loss made from using the Agency Sale Option, rather than under the CGT as described in the preceding paragraph. In such a situation the investor would not be entitled to the CGT discount. Early Maturity and Early Redemption Early Maturity does not affect the above tax analysis. If an investor’s Unit is bought back by the Issuer, there is a risk that any gain will be assessed as ordinary income. This will depend on the circumstances in which these events occur. Non-resident unitholders (including New Zealand residents) Non-resident unitholders (that do not carry on business through an Australian permanent establishment) should not be subject to taxation in Australia on their investment in the Units or the Delivery Assets as the Units and Delivery Assets should not be considered taxable Australian property (this is the jurisdictional limit of the Australian capital gains tax provisions). Security A Unit should not be characterised as either a “qualifying security” for the purposes of Division 16E of the 1936 Act or a “traditional security” for the purposes of sections 26BB and 70B of the 1936 Act. This is because a Unit is a 36 Instreet Investment contract for the delivery of the Delivery Assets and is not therefore a “security” as defined for the purposes of these provisions. Accordingly, those provisions should not apply to a Unit acquired by an investor. This view is supported by the Commissioner in Taxation Determination TD 2008/21. Gearing – Complying Superannuation Funds In addition to the general gearing discussion, below, complying superannuation funds must also consider the rules contained in the Superannuation Industry (Supervision) Act 1993 and the Superannuation Industry (Supervision) Regulations 1994 if they are considering borrowing to purchase the Units. Gearing – All Investors Investors should seek their own independent advice as to their own individual ability to deduct any interest expenses and borrowing expenses related to borrowings to fund an investment in a Unit. As a general rule, interest on money borrowed for the purpose of deriving assessable income is deductible as the liability accrues. However, this general rule is subject to various qualifications. As an example, interest will not be deductible if there is no income (other than capital gains) arising from an investment in Units. Relevant to this point, Investors should note that no coupons are payable during the investment term of the Units. Part IVA of the 1936 Act Part IVA includes the general anti-avoidance regime for income tax. Broadly, Part IVA can apply to an investor’s investment if any party has entered into this arrangement for the dominant purpose of enabling the investor to obtain a tax benefit. A tax benefit can include deferring the recognition of assessable income to a later year of income or converting an assessable income amount into a discount capital gain. An investor in this product may obtain a tax benefit. Relevantly, if an investor acquired, or had a right to acquire, an interest in certain types of offshore investments, the investment would be assessed on an accruals basis over the term of the investment under the Foreign Investment Fund provisions of the 1936 Act (unless the investor qualified for a particular exemption from those rules). Therefore, the application of Part IVA of the 1936 Act depends on whether, viewed objectively, an investor would be taken to have invested in this product with the dominant purpose of obtaining a tax benefit. This depends on the circumstances of each investor. Depending on the profile of the investor, the Commissioner may need to weigh the commercial advantages of investing in the Unit (including those set out in this PDS) against the tax benefits referred to above. Taxation of Financial Arrangements The Tax Laws Amendment (Taxation of Financial Arrangements) Act 2008 contains the final stages of the taxation of financial arrangements (“TOFA”) reforms. There are a number of exclusions from TOFA. Specifically, the TOFA rules should not apply to superannuation entities with assets of less than A$100 million or individuals that hold a Unit since the Unit is not regarded as a qualifying security (see above discussion). Other Investors should seek advice from their own tax adviser as to the possible application of the TOFA regime to their investment in a Unit. Stamp Duty As the Delivery Assets are ASX listed ordinary shares, no stamp duty will be payable on the issue or transfer of a Unit provided that the ASX listed ordinary shares are quoted on the Australian Stock Exchange at all relevant times (including for example the dates of issue of the Unit and transfer of the Delivery Assets) and the Delivery Assets will not represent 90% or more of the issued capital of any of the issuing companies. If stamp duty becomes payable by the Issuer in connection with the terms of this PDS or as a consequence of, or in connection with the purchase, sale or transfer of, or the Maturity of the purchase and sale of the Delivery Assets, then the Issuer can under the terms of this PDS require an investor to pay such stamp duty. GST The sale and acquisition of shares (including a right to acquire shares) is likely to be an input-tax financial supply and as a result no GST should be payable in respect of the acquisition of the Delivery Assets. If GST becomes payable by the Issuer in connection with the terms of this PDS or as a consequence of, or in connection with the purchase, sale or transfer of, or the Maturity of the purchase and sale of the Delivery Assets, then the investor can be required to pay an additional amount on account of such GST. An investor may not be entitled to full input tax credits for GST paid on the acquisition of goods and services (for example, financial advisory services) relating to the issue of the Units and acquisition and/or subsequent sale of Delivery Assets. This will depend on the investor’s personal circumstances. Investors should discuss the potential application of Part IVA with their own tax adviser. 37 9. Additional Information Preparation of this PDS Information in this PDS in respect of the Reference Index and Delivery Assets has been derived from publicly available information only and has not been independently verified. Neither the Issuer, Arranger, nor any of their affiliates accepts any liability or responsibility for, and makes no representation or warranty, express or implied, as to the adequacy, accuracy or completeness of such information. You should make your own enquiries. You should also note that no person is authorised by the Issuer to give any information to Investors or to make any representation not contained in this PDS. In particular, neither the Issuer, Arranger, nor any of their affiliates take any responsibility for statements or actions of any distributor of the product or any financial adviser of an Investor. Nothing contained in this PDS is to be relied upon as implying that there has been no change in the information contained in this PDS since the dates as at which information is given in this document. No representation as to future performance of the Reference Index, the Delivery Assets or as to the future performance of assets, dividends or other distributions of any of the Reference Index, Reference Assets or Delivery Assets are made in this PDS or in any offer or invitation to subscribe for, sell or issue Units. The Issuer does not take into account labour standards or environmental, social or ethical considerations. Obligations of the Issuer The Units will constitute direct obligations of the Issuer. The obligations are secured by a Charge in favour of Investors held on Trust by the Security Trustee. Please refer to Section 2 “Risks” under the heading “Creditworthiness of Issuer and Hedge Provider” for more details. Applications can be lodged at any time during the Offer Period for the Units, subject to the right of the Issuer to close the offer at an earlier date without prior notice. No cooling-off rights apply in respect of a purchase of the Units. Security Trust Deed The Security Trust Deed is entered into by Instreet Structured Investment Pty Limited (Instreet Structured Investment) and AET Structured Finance Investment Services Pty Ltd (Security Trustee). Under the Security Trust Deed, the Security Trustee is appointed as trustee under the Transaction Documents (including the Deed of Charge) and to enter into the Security (including the Charge) in that capacity and agrees to such appointment. The Security Trust Deed is a Master Security Trust Deed and a number of Separate Trusts are created under the Security Trust Deed. A Separate Trust is created in relation to each Series of DPA (in this case, each of Series I and II). 38 Instreet Investment Under the Deed of Charge (explained below), Instreet Structured Investment charges the relevant Parcel of Secured Property (which includes Application monies received from Investors, the Hedge, any proceeds from the Hedge and any Delivery Assets or other investments purchased with proceeds from the Hedge) for that Series (including all the present and future rights, title, benefit and interest of Instreet Structured Investment in the Hedge) in favour of the Security Trustee. The Security Trustee will then hold the relevant Parcel of Secured Property on trust for each Investor in proportion to the number of DPA Units an Investor holds on the terms of the Security Trust Deed until termination of the Separate Trust. The primary function of the Security Trustee is to exercise any right, power or remedy under the Security and enforce the Security on behalf of the Investors. Investors are not allowed to exercise these rights or have any direct recourse to the security constituted by the Security except through the Security Trustee. However, where the relevant group of Investors have instructed the Security Trustee to exercise a right, power, authority, discretion, or remedy of, or conferred on, the Security Trustee and the Security Trustee fails to do so within a reasonable time, the relevant group of Investors may act on behalf of the Security Trustee to exercise the right, power, authority, discretion, or remedy. In exercising these powers, the Security Trustee must request the instructions of the Majority Investors (by way of convening a meeting of Investors) and act in accordance with them. Each Separate Trust created under Security Trust Deed will terminate when Instreet Structured Investment has satisfied in full its Secured Obligations in respect of that Separate Trust and the Trust Fund for that Separate Trust is distributed in full. The Security Trustee can resign as trustee of a Separate Trust at any time by giving at least 30 days’ written notice. However, it is a term of the Security Trust Deed that the resignation of the Security Trustee does not take effect until a successor Security Trustee is appointed. The liability of the Security Trustee is limited under the terms of the Security Trust Deed. In particular the Security Trustee (and its directors, specified persons acting on its behalf, employees, agents or attorneys) are not liable for any loss or damage occurring as a result of it exercising, failing to exercise or purporting to exercise any powers under the Security Trust Deed or in relation to the Securities, any failure of the Issuer to comply with their obligations or for acting in accordance with the instructions of the Investors or Majority Investors. The Security Trustee’s liability is limited to the extent that the Security Trustee obtains final reimbursement from the relevant Separate Trust, being the Secured Property (including the Trust Fund). The Security Trustee is not obliged to take any action or exercise any of its powers until it is first indemnified to its reasonable satisfaction. Investors will receive payment only after the costs and expenses of the Security Trustee have been paid. A copy of the Security Trust Deed is available upon request. Please contact Instreet at 1300 954 678. Deed of Charge Under the Deed of Charge for each Series and Separate Trust, Instreet Structured Investment Pty Limited (Chargor) charges the Secured Property (including all the present and future rights, title, benefit and interest of Instreet Structured Investment in the Hedge) to the Security Trustee to secure the satisfaction of the Secured Obligations in respect of that Separate Trust (including the performance of the Issuer’s obligations under the PDS and the Terms of the Deferred Purchase Agreement). This is a first ranking fixed charge (subject to any prior, permitted Security Interests in the Transaction Documents, such as the credit support annex in the Hedge). The Security Trustee enters into each Deed of Charge in its capacity as trustee of the Separate Trust created under the Security Trust Deed and that Deed of Charge. The Charge will be released if the Security Trustee is satisfied that all of the Secured Obligations in respect of the relevant Separate Trust are paid, discharged or performed in full. The Security Trustee can rely on a certificate of the Issuer as to the amount of Secured Obligations owing at any time. If an Event of Default under a Charge occurs, the Chargor must immediately pay or perform the Secured Obligations to the Security Trustee on demand by the Security Trustee and in the manner notified by the Security Trustee. If an Event of Default occurs, the Security Trustee has the power to do all acts and things and exercise all rights, powers and remedies that the Chargor could do or exercise in relation to the Secured Property of the relevant Separate Trust, including the power to: take possession and assume control of that Secured Property and collect and give receipts for the Secured Property; receive all dividends or other distributions made or to be made in respect of the Security Property of the relevant Separate Trust; sell, close out, terminate, unwind or agree to sell, close out, terminate or unwind the Secured Property on terms that the Security Trustee thinks fit; grant to any person an option to purchase any Secured Property on terms that the Security Trustee thinks fit; carry on business or concur in carrying on any business of the Chargor in respect of the Secured Property; do anything to maintain, protect or improve the Secured Property; make any agreement to compromise the Secured Money which the Security Trustee thinks fit; surrender or transfer the Secured Property to any Government Agency (whether or not for fair compensation); exchange any part of the Secured Property for any other property, for fair value and the property so acquired by the Security Trustee shall be treated as if it were part of the Secured Property and, for that purpose, the Security Trustee may create a Security Interest over that property in favour of the Security Trustee; delegate to any person at any time as the Security Trustee approves any or all of the powers of the Security Trustee on terms that the Security Trustee thinks fit; give effective receipts for all money and other assets that come into the hands of the Security Trustee; carry out and enforce, or refrain from carrying out or enforcing, agreements entered into or held by the Chargor in relation to the Secured Property or entered into in exercise of the rights, powers or remedies of the Security Trustee under the Deed of Charge; institute, conduct, defend, discontinue, settle, arrange or compromise any proceedings, including proceedings relating to insurance of the Secured Property; execute and deliver documents on behalf of the Chargor under seal or under hand; exercise any voting rights or powers in respect of any part of the Secured Property; and do or cause to be done any other act or thing which the Security Trustee considers necessary or incidental to the exercise of any right, power or remedy of the Security Trustee. The Security Trustee will hold any moneys or Delivery Assets received on trust for the Beneficiaries in accordance with the Security Trust Deed. Events of Default under the Charge include: the Chargor or the Hedge Provider becoming insolvent; the Chargor failing to perform or observe a material obligation under a Transaction Document (for example, the Chargor failing to perform a material obligation under the Terms of the Deferred Purchase Agreement); an Event of Default (as defined in the Hedge) occurs; a Termination Event (as defined in the Hedge) with respect to which the Chargor is the Affected Party (as defined in the Hedge) occurs; or a representation or warranty made or deemed to be made by the Chargor in, or in connection with, the Transaction Documents is untrue or misleading (by omission or in any other way) in any material respect when made or repeated; and 39 9. Additional Information Continued a proceeding is commenced against the Chargor or in relation to any Secured Property which does or may threaten the Chargor’s entitlement to any Secured Property. If an Event of Default under the Charge occurs, it is very likely that it will also constitute an Event of Default under the Hedge. If the defaulting party is the Issuer (or Chargor) then the Hedge Provider (and counterparty to the Hedge) will have the right (but not the obligation) to terminate the Hedge. If the Hedge is terminated, it will be an early unwind and the value derived will be the early termination value of the Hedge. This may be significantly less than the value that Investors could expect on Maturity, and may be zero. Therefore, even though the Secured Property is charged for the benefit of Investors, if an Event of Default occurs and the Charge is enforced, Investors may receive nothing, depending upon the value of the Secured Property at the time of enforcement. If a single amount is received from a Hedge Provider in respect of a number of Series, the Security Trustee may allocate the amount received to one or more Separate Trusts (corresponding to one or more Series) proportionally by reference to: (a) the last individual valuation of the Hedge for each Series; and (b) where the Security Trustee is unable to obtain the last individual valuation of the Hedge for any Series, the most recent valuation of the Units for that Series as published by the Issuer or the Arranger multiplied by the number of Units on issue in that Series. A copy of the Deed of Charge is available upon request. Please contact Instreet at 1300 954 678. Consents None of the parties referred to below have authorised or caused the issue of this PDS or make or purport to make any statement in this PDS (or any statement on which a statement in this PDS is based) other than as specified below. Baker & McKenzie (solicitors) has given and not withdrawn, its written consent to being named as having acted as solicitors to the Issuer in connection with the issue of the Units pursuant to this PDS. It has in that capacity, prepared the Terms of the Deferred Purchase Agreement and the tax opinion. Otherwise, Baker & McKenzie does not make any statement in, or take responsibility for any part of, this PDS and has not authorised the issue of the PDS nor does any statement herein purport to be based on a statement made by Baker & McKenzie expected for the Terms of the Deferred Purchase Agreement and tax opinion. 40 Instreet Investment Link Market Services Limited (ABN 54 083 214 537) (Link) has given and, as at the date of this PDS, not withdrawn its consent to the inclusion of statements regarding Link in this PDS in the form and context in which they are included and to be named as the Registrar in this PDS in the form and context in which it is named. It has not been involved in the preparation of any part of the PDS. It has not authorised or caused the issue of, and expressly disclaims and takes no responsibility for any part of the PDS other than reference to its name and it takes no responsibility for the contents of the PDS. Link does not guarantee the success of the Units, the repayment of capital or any particular rate of capital or income return. Instreet Investment Limited has given and, as at the date of this PDS, not withdrawn its consent to be named in this PDS in the form and context in which it has been named and to the descriptions of Instreet Investment Limited in this PDS. Instreet Investment Limited is responsible for the description of it in the PDS. Instreet Investment Limited has not authorised or caused the issue of the PDS. Accordingly, Instreet Investment Limited expressly disclaims and takes no responsibility for, any statements or material in or omissions from the PDS, other than its description and other sections verified by Instreet. EA Financial, LP has given and, as at the date of this PDS, not withdrawn its consent to be named in this PDS in the form and context in which it has been named in this PDS. EA Financial, LP has not authorised or caused the issue of the PDS. Accordingly, EA Financial, LP expressly disclaims and takes no responsibility for, any statements or material in or omissions from the PDS, other than its description. AET Structured Finance Services Pty Limited: (a) has not made any statement or purported to make any statement in this document or any statement on which a statement in this document is based, (b) to the maximum extent permitted by law, expressly disclaims all liability in respect of, makes no representation or any statement regarding, and takes no responsibility for, any part of this document, or any statements in, or omissions from the documents, other than the references to its name; (c) has given and has not, before the issue of this PDS, withdrawn its written consent: (i) to be named in this PDS in the form and context in which it is named; and (ii) to the inclusion in this PDS of the statement(s) and/or report(s) (if any) by that person in the form and context in which they appear in this PDS; and (d)does not guarantee the return of any capital sums invested or any rate of return or the performance of any obligations. Privacy Policy Should you apply for Units by lodging an Application Form with the Issuer, you acknowledge and agree that: (a) The Issuer (and or any of its nominees) may collect your personal information for the purpose of processing your application for the Units, issuing the Units, managing your investment and complying with relevant laws. If you do not provide the personal information as the Issuer requires, your application may not be processed; and (b) The Issuer may be required to disclose all or some of your personal information to: (i) related bodies corporate that might not be governed by Australian laws for the purpose of account maintenance and administration; (ii) share registries, custodians and certain software providers related to the operational management and settlement of the Units; (iii) other third parties for the purpose of account maintenance and administration, marketing research or acquiring any interest in any part of the business of your adviser; and (iv) regulatory authorities such as the ASX. All personal information collected from you will be collected, used and stored by the Issuer in accordance with the Issuer’s Privacy Policy, a copy of which can be made available to you on request. To obtain a copy, please contact the Issuer per the details in the Directory at the back of this PDS. You can access the personal information the Issuer holds about you. The Issuer and/or its associates may wish to communicate with you in the future about other investment opportunities which may be of interest to you. If you do not wish to be contacted for these purposes, please contact the Issuer. Dispute resolution If you have a complaint that has not been sufficiently resolved by the Issuer, you can contact the Financial Ombudsman Service (“FOS”). FOS is independent from the Issuer. Contact FOS at: Telephone 1300 780 808 Email info@fos.org.au Mail Financial Ombudsman Service PO Box 3 Melbourne VIC 8007 FOS is an independent body and is approved by the ASIC to consider complaints. In order for a complaint to be considered by FOS, the claim must be less than A$500,000 (unless we and you agree otherwise in writing). Potential conflicts of interest The Issuer and other Instreet Group companies may conduct transactions as principal and agent in various securities including ASX Listed Securities or financial products which comprise any Index. These trading activities may impact the price at which the ASX listed securities trade or the level of the Reference Index or the Units at any point in time. Please see Section 2 “Risks” for more details of conflicts of interest. 41 10. Terms of the Deferred Purchase Agreement These Terms form the terms and conditions on which the Investor agrees to acquire the Delivery Parcel from the Issuer. Capitalised words have the meaning given to them in the “Definitions” section of this PDS. Any reference to “Reference Asset” in this section 10 includes a reference to “Reference Index”. 1 Applications and Acceptance 1.1 Offer by the Investor An Investor may make an offer to the Issuer to acquire the Delivery Parcel from the Issuer on a deferred basis in accordance with these Terms: (a) by completing and returning a valid Application Form to the Issuer by the Issue Closing Date; and (b) by ensuring that an amount equal to the Total Investment Amount is received by the Issuer in cleared funds by the Issue Closing Date. 1.2 Investor bound by Terms By signing the Application Form and lodging it with the Issuer, the Investor agrees to be bound by these Terms including any variation to these Terms advised to Investors in a supplementary PDS or otherwise and the terms of the Security Trust Deed and relevant Deed of Charge. 1.3 Acceptance of the offer by the Issuer (a) The Issuer may decide at its absolute discretion whether or not it will accept the Investor’s offer to acquire the Delivery Parcel from the Issuer. (b) If the Issuer decides that it will accept an Application and provided that the Issuer has received the Total Investment Amount in cleared funds by the Issue Closing Date (or such other time if otherwise accepted by the Issuer in its discretion), acceptance of the Investor’s offer will take place, and the parties’ rights and obligations under these Terms will commence, on the date Units are issued. For each multiple of the Issue Price paid the Investor will be entitled to one Unit. (c) Within 10 Business Days of the Commencement Date, the Issuer will send to the Investor a Confirmation Notice acknowledging either the acceptance or rejection of an Investor’s offer and setting out any relevant details of the Unit. 42 Instreet Investment 1.4 Issue of Units Units are issued within one month of an Application being accepted. Economic exposure for the Units commences on the Commencement Date. If the Issuer is unable to achieve the economic exposure on the Commencement Date due to any condition set out in the PDS not being satisfied (e.g. Minimum Total Subscription or Barrier Level not met) then Investors Units will be terminated and Investors will receive a refund of their Total Investment Amount without interest. 2 Appointment of Registrar (a) The Issuer will appoint the Registrar set out in the PDS. The Registrar will be responsible for establishing and maintaining a Register for the Units issued by the Issuer during the term of the Registrar’s appointment. The Register will be established and maintained in Sydney (or any other place in Australia as the Issuer and the Registrar may agree). (b) The Investor acknowledges and agrees that the Register will be conclusive evidence of ownership of interests in the Units. The Issuer is not required to recognise any interest in Units not recorded in the Register. 3 Deferred purchase of Delivery Assets 3.1 Purchase of Delivery Assets The Investor agrees to purchase from the Issuer the Delivery Parcel for the Total Investment Amount (which will be paid by the Investor in accordance with clause 3.2). The Issuer will deliver the Delivery Parcel to the Investor on the Settlement Date in accordance with clause 4. 3.2 Payment of the Total Investment Amount (a) The Investor must pay the Total Investment Amount to the Issuer in cleared funds by the Issue Closing Date (or such other time if otherwise accepted by the Issuer in its discretion). (b) The Minimum Investment for which an Application will be accepted by the Issuer under these Terms is the minimum amount set out in the Product Summary. 4 Maturity and Settlement 4.1 Notice of Maturity The Issuer will give a Notice of Maturity to each Investor not less then 20 Business Days prior to the Maturity Date, unless otherwise specified in the PDS. 4.2 Effecting Maturity Physical delivery of the Delivery Parcel will occur in accordance with clause 4.3, unless the Investor wishes to use the Agency Sale Option and validly elects to do so by: (d) the Investor acknowledges and agrees that: (i) the Issuer or its nominees agree to sell the Delivery Parcel on behalf of the Investor as soon as reasonably practicable on or after the Settlement Date for an amount per Delivery Asset equal to the Delivery Asset Price; (ii) to the maximum extent permitted by law, the Issuer and its nominees are not responsible for any loss, costs or expense incurred by the Investor as a result of using the Agency Sale Option, except to the extent that such loss, cost or expense arises as a result of the Issuer’s or the nominee’s gross negligence, willful default, fraud or dishonesty; (iii) the Issuer and its nominees will use their best endeavours to sell the relevant Delivery Parcel in accordance with clause 4.4(d)(i). If, for any reason whatsoever, the Issuer and its nominees are unable to sell the relevant Delivery Parcel at the Delivery Asset Price, the Investor irrevocably authorises the Issuer and its nominees to use their best endeavours to sell the relevant Delivery Parcel as soon as practicable at the best price the Issuer and its nominees can reasonably obtain. (a) returning a Notice of Maturity to the Issuer at least 10 Business Days before the Maturity Date; and (b) clearly specifying in the Notice of Maturity that the Investor will use the Agency Sale Option. 4.3 Physical delivery of the Delivery Assets to the Investor (a) The Issuer (either itself or through a nominee) will procure the performance of all acts required of a transferor of marketable securities under the ASTC Settlement Rules for ASX listed Delivery Assets to enable the Delivery Parcel to be transferred to the Investor (or the Investor’s nominee) on the Settlement Date or as soon as possible thereafter, free from any security interest or third-party interest or restriction on transfer (other than one that has been accepted by the ASX for the purposes of quotation of the property comprising the Delivery Assets). (b) In respect of ASX listed Delivery Assets, the Investor irrevocably authorises the Issuer and any of its nominees, at the option of the Issuer, to act as the Investor’s agent to do all things required to be done, including but not limited to supplying the Investor’s HIN, to effect the delivery of Delivery Parcel to the Investor (or the Investor’s nominee). (c) Investors will have their Delivery Parcel delivered to an issuer sponsored subregister CHESS account of the Delivery Asset issuer. 4.4 Delivery through the Agency Sale Option If the Investor has elected to use the Agency Sale Option, the Issuer (either itself or through a nominee) will procure the delivery of the Delivery Parcel as follows: (a) The Issuer or its nominees are irrevocably authorised to accept physical delivery of the Delivery Parcel for and on behalf of the Investor; (b) the Investor irrevocably authorises the Issuer or its nominees to sell, and irrevocably directs and authorises the Issuer or any of its nominees to take all actions necessary or desirable to effect the sale by the Issuer or its nominees of the Delivery Parcel for and on behalf of the Investor; (c) the Issuer or its nominees on behalf of the Issuer will pay to the Investor’s Nominated Account (or pay by cheque to the Investor if no Nominated Account is nominated) the Sale Monies, within 10 Business Days of the Settlement Date or as soon as reasonably practicable thereafter; and 4.5 Satisfaction of obligations Upon delivery of the Delivery Parcel to the Investor in accordance with clause 4.2 or payment of Sale Monies to an Investor in accordance with clause 4.4(c), the Issuer’s obligations to the Investor under these Terms are satisfied in full and discharged. 4.6 Delivery of a whole number of Delivery Assets only The Issuer or its nominee will not transfer a fractional Delivery Asset or parts of a Delivery Asset. If after aggregating all Delivery Assets transferred to an Investor on the Settlement Date, and if any fractional unit will be transferable by the Issuer on the Settlement Date, the Issuer will cause to be paid to the Investor (within 10 Business Days of the Settlement Date or as soon as reasonably practicable thereafter) an amount equal to the value of the fraction of the unit forgone based on the Delivery Asset Price provided that such amount exceeds twenty Australian Dollars (A$20.00). If the amount does not exceed A$20.00, the Issuer is under no obligation to the Investor to make any payment for the fractional unit. Upon payment of the amount under this clause, the Issuer is discharged of its obligation to deliver the fraction of the unit forgone. 43 10. Terms of the Deferred Purchase Agreement Continued 4.7 Substitution of Delivery Assets If any of the Delivery Assets selected by the Investor are unable to be delivered due to any legal or regulatory restriction relating to the Delivery Asset (including but not limited to cessation or Suspension from listing) or the Issuer, including but not limited to trade limitations resulting from internal conflict arrangements, then the Issuer shall either deliver anyother Delivery Assets contained in the S&P/ASX 200 Index and deliver that substituted security in accordance with these Terms as if the definition of “Delivery Asset” was amended to refer to the substituted security, or, if a basket of Delivery Assets is to be delivered, the Issuer may substitute the affected Delivery Asset or deliver only the remaining unaffected Delivery Assets in the basket. 5 Early Maturity 5.1 Early Maturity by the Issuer The Issuer may, at any time (at its absolute discretion), nominate any of the following events as an Early Maturity Event: (a) any arrangements entered into by the Issuer in order to hedge the Issuer’s obligations in respect of the Units in whole or in part are terminated, redeemed, suspended, ended or cannot reasonably be acquired, established, maintained, substituted or reestablished; or (b) the Issuer does not receive any of the amounts due to the Issuer under any arrangements entered into by the Issuer in order to hedge the Issuer’s obligations in respect of the Units (including the Hedge). (c) the Issuer has or will become obliged to pay additional amounts as a result of any change in, or amendment to, the laws or regulations of or any political subdivision or any authority thereof or therein having power to Tax, or any change in the application of official interpretation of such laws or regulations, which change or amendment becomes effective on or after the Commencement Date; or (d) a Change of Law occurs; (e) if the Issuer determines in good faith that the performance of its obligations in relation to or under these Terms has or will become, in circumstances beyond the reasonable control of the Issuer, impossible, unlawful, illegal or otherwise prohibited or that the Units or investment returns provided by the Units are or will be substantially different from those described in this PDS as a result of one or more Adjustment Events; (f) any actual or proposed event that may reasonably (in the Issuer’s opinion) be expected to lead to any of the events referred to in paragraphs (a) to (e) above occurring. If any event occurs which constitutes both an Adjustment Event and an Early Maturity Event as defined in this clause, the Issuer may at its discretion treat that event as either an Adjustment Event or Early Maturity Event; or 44 Instreet Investment (g) the occurrence of a Barrier Event. If any event occurs which constitutes both an Adjustment Event and an Early Maturity Event as defined in this clause, the Issuer may in its discretion treat that event as either an Adjustment Event or Early Maturity Event. 5.2 Determination that there will be an Early Maturity Where the Issuer has nominated an event as an Early Maturity Event, the Issuer may at its absolute discretion determine that there will be an Early Maturity and may specify a date as the Early Maturity Date. 5.3 Investor Requested Issuer Buy-Back Unless specified otherwise, the Investor may request the Issuer to buy back their Units on any Business Day by giving an Issuer Buy-Back Form to the Issuer. An Issuer Buy-Back can only be requested in respect of the Minimum Buy-Back Amount of Units. Once lodged, the request for an Issuer Buy-Back is irrevocable. It is at the Issuer’s absolute discretion to accept or reject or hold over the request for an Issuer Buy-Back. If the Issuer accepts: (a) The Issuer will as soon as practicable after the request is received and accepted, execute the Issuer Buy-Back on the Buy-Back Date. The Investor acknowledges that the Buy-Back Date will depend, in part, upon the Issuer’s ability to liquidate its hedging arrangement (if any), and may require the Issuer to delay and hold over an Issuer Buy-Back request. (b) The Issuer will at its absolute discretion determine the Buy-Back Price for the purchase of the Investor’s Units. The Buy-Back Price will be calculated by reference to the fair market value of the Units on the Buy-Back Date, less the Buy-Back Administration Fee (if any), any Delivery Costs, Break Costs and any bid-offer spread charged by the Issuer. The Issuer may provide an Investor with an estimate of the Buy-Back Price before effecting the Buy-Back but is not obliged to do so. The Investor acknowledges this is an estimate only and the actual Buy-Back Price on the Buy-Back Date may be significantly less than the estimate. (c) Settlement of an Issuer Buy-Back will take place by payment of the Buy-Back Price to the Investor in cash. (d) Upon settlement of the Issuer Buy-Back, the Issuer will arrange for an Investor’s name and details to be removed from the Register. 5.4 Early Maturity Mechanism (a) If the Issuer determines that there will be an Early Maturity, the Early Maturity will take place as follows: (i) The Issuer will, before the Early Maturity Date, notify the Investor that Early Maturity will occur on the Early Maturity Date in accordance with clause 5 of these Terms. The Issuer will specify in the Early Notice of Maturity whether Early Maturity will occur by the maturity process in accordance with clause 5.4(a)(ii) or by Termination Payment in accordance with clause 5.4(a)(iii). (ii) If specified in the Early Notice of Maturity and subject to clause 5.4(b), Early Maturity will take place in accordance with the procedures set out in clauses 4.2 to 4.5 of these Terms. (iii) If specified in the Early Notice of Maturity, Early Maturity will occur by the Issuer paying to the Investor the Termination Payment to the Investor’s Nominated Account (or pay by cheque to the Investor if no Nominated Account is nominated) by the Settlement Date or as soon as practicable thereafter. (iv) After the Delivery Parcel is delivered to the Investor under clause 4.2 or the Issuer (or its nominee) pays the Investor the Termination Payment in accordance with clause 5.4(a)(iii) as a result of an Early Maturity Event occurring, all obligations of the Issuer to the Investor under these Terms are deemed to be satisfied in full and the Issuer is discharged from its obligations under these Terms. This clause does not discharge the Issuer from its obligations under the Privacy Act or the terms of its privacy policy. (b) If an Early Maturity is nominated by the Issuer, for the purposes of determining the Delivery Parcel, the definition of “Delivery Parcel” in the Definition section of the PDS is amended by replacing “Final Value” with “Early Maturity Value”. (c) Where there is an Early Maturity Event that is a Barrier Event, the Early Maturity Value and Termination Payment will be zero. 5.5 Early Maturity Value on Early Maturity or Issuer Buy-Back In determining the “Early Maturity Value” or the Buy-Back Price the Issuer may deduct any costs, losses or expenses that it incurs in relation to the Early Maturity or Issuer Buy-Back, including but without limitation to Delivery Costs, Break Costs, administrative costs, costs of unwinding any hedge put in place for the purposes of meeting its obligations under these Terms, and any cost of funding or any loss of bargain. 5.6 Possible reduction of value on Early Maturity If there is an Early Maturity, the Issuer does not guarantee to deliver to the Investor a Delivery Parcel based on the Final Value. For the avoidance of doubt, when there is an Early Maturity (and the Issuer elects to apply the maturity process in accordance with clause 5.4(a)(ii)) the Delivery Parcel will only be determined in accordance with clause 5.5. 5.7 Adjustments to this clause Subject to clause 15, where the Issuer determines that any of the provisions of this clause 5 are not appropriate in any particular circumstances, or that any event which is not dealt with in clause 5 should have been dealt with, it may make any alterations to the effect of this provision or any other Term that it considers to be appropriate. 6 Adjustment Events and Market Disruption Events 6.1 Adjustment Events If an Adjustment Event occurs or is proposed to occur on or before the Maturity Date, the Issuer may at its absolute discretion elect to do any or all of the following: (a) substitute part or all of the affected Reference Asset with any other asset or index; and/or (b) substitute the Delivery Asset with any other security which is a constituent of the S&P/ASX 200; and/or (c) adjust or amend any variable, formula, amount or calculation as set out or used in these Terms (including the PDS); and/or (d) adjust, amend or substitute the definition of Reference Asset or Delivery Asset and/or vary, adjust, amend, replace any of the terms referred to in the PDS; and/or (e) determine to suspend any of the necessary calculations referred to in these Terms as appropriate until reliable values can be obtained; in a manner: consistent with any adjustment or change made to the Issuer’s hedging arrangement; or as the Issuer otherwise determines, provided that in the reasonable opinion of the Issuer the adjustment is appropriate to put both the Issuer and the Investor in as similar an economic position as possible as the Investor and the Issuer would have been in had the Adjustment Event not occurred. If in the reasonable opinion of the Issuer it is not possible or desirable to deal with the occurrence of the Adjustment Event in accordance with this clause 6, the Issuer may nominate the event as an Early Maturity Event and may deal with that event in accordance with clause 5. The Issuer will notify Investors of any adjustment that it proposes to make under this clause before the adjustment occurs or as soon as reasonably practicable after the adjustment occurs and the Issuer will determine and notify Investors of the effective date of that adjustment. 45 10. Terms of the Deferred Purchase Agreement Continued 6.2 Market Disruption Events 8 Issuer’s obligations (a) If there is a Market Disruption Event affecting a Reference Asset on the Maturity Date, the Buy-Back Date, Issuance Observation Date, Maturity Observation Date, or any other date on which a payment, calculation, adjustment or amendment is to be made then the Issuer may determine at its discretion to take: (a) The Issuer’s obligations under these Terms (including in relation to the deferred purchase of the Delivery Assets) are direct obligations of the Issuer. (A) any action required to reflect any adjustment, change, substitution, delay, Suspension or other action taken in relation to its hedging arrangements; or (B) to determine that such date is to be the first following Scheduled Trading Day on which there is no Market Disruption Event. However, if there is a Market Disruption Event affecting the Reference Asset on each of the 10 Scheduled Trading Days immediately following the original date that, but for the Market Disruption Event, would have been the Maturity Date or Observation Date, then: (a) Upon acceptance by the Issuer of the Investor’s Application for Units, the Investor receives, in respect of their Total Investment Amount, a Beneficial Interest in a Portion of the Delivery Assets on the Commencement Date. The Investor holds the Beneficial Interest in the Portion of the Delivery Assets until the earlier of the Maturity Date or transfer of their Units in accordance with these Terms. (i) that 10th Scheduled Trading Day is to be taken to be the Maturity Date or Observation Date (as applicable), despite the Market Disruption Event; and (ii) the Issuer must on that 10th Scheduled Trading Day in good faith and at its absolute discretion determine the observation to be recorded for the calculation of the Reference Asset Closing Price that would have prevailed on the original date but for that Market Disruption Event. (b) The Issuer must, as soon as practicable (and, in relation to the Maturity Date, in no event later than 5 Business Days after the original date that, but for the occurrence or existence of a Market Disruption Event, would have been the Maturity Date) notify Investors of the existence or occurrence of a Market Disruption Event. (c) If there is a Market Disruption Event affecting a Delivery Asset on the Settlement Date, then the Settlement Date for the affected Delivery Asset is to be the first following a Business Day on which there is no Market Disruption Event. (d) If an event is both a Market Disruption Event and an Adjustment Event, the Issuer may determine whether to treat the event as either a Market Disruption Event or an Adjustment Event or both (if possible). 7 Accretions These Terms do not confer on the Investor any right or interest in respect of Accretions to the Delivery Assets arising prior to delivery of the Delivery Assets. Accretions to the Delivery Assets or the Reference Assets may lead to adjustments as provided for in clause 6 of these Terms. 46 Instreet Investment (b) The Issuer undertakes to only engage in the business of issuing financial products that are ringfenced. 9 Beneficial Interest in Delivery Assets (b) An Investor may deal with the Beneficial Interest only in accordance with these Terms. (c) The Beneficial Interest forms part of the Units held by the Investor and may not be severed from the balance of the rights in connection with those Units or dealt with separately in any way. (d) When an Investor deals with its Units in any way, then without the need for any additional writing or action, the same dealing between the same parties shall occur in respect of the corresponding Beneficial Interest. When an Investor deals with a Beneficial Interest in any way, then without the need for any additional writing or action, the same dealing between the same parties shall occur in respect of the corresponding Units. For example, when an Investor (the “old holder”) transfers its Units to another person (the “new holder”): (i) all the rights and obligations that attach to those Units, including the Beneficial Interest are transferred from the old holder to the new holder; (ii) the old holder’s interest in the Units will be removed from the Register and the new holder will be added to the Register; and (iii) the old holder ceases to have any rights in relation to those Units or the Beneficial Interest. (e) If any Investor purports to deal with its Units without an equivalent dealing in the corresponding Beneficial Interest, or if any Investor purports to deal with a Beneficial Interest without an equivalent dealing in the corresponding Units, or if any Investor purports to contract out of this clause in any way, any such dealing will be void and the Units and the Beneficial Interest will remain with the Investor recorded on the Register of holders. (f) The Issuer or its nominee will hold the Portion of the Delivery Assets from the Commencement Date until the Maturity Date for the relevant Investor and will be entitled to retain any distributions made in connection with those assets, exercise all voting rights and will not be required to respond to any notice of meeting or other material in connection with those assets to the Investor. On the Maturity Date, the Issuer will sell the Portion of the Delivery Assets and the Sale Monies from this sale will be included in the Final Value. (g) The Investor agrees and acknowledges that the agreement to purchase the Delivery Assets as set out in these Terms and the payment of the Total Investment Amount does not transfer the legal or beneficial interest in the Delivery Assets to the Investor other than the Beneficial Interest in a Portion of the Delivery Assets. The parties agree and acknowledge that the legal or beneficial interest in the balance of the Delivery Assets will transfer to the Investor only on the Settlement Date. If the Issuer fails to deliver the balance of the Delivery Parcel to the Investor in accordance with these Terms, the Investor agrees that it will not be entitled to an injunction, specific performance or any other equitable rights or remedies and will be entitled only to damages. 10 Security Trust Deed Investors agree and acknowledge that pursuant to the Security Trust Deed and the Deed of Charge for the relevant Series, the Security Trustee holds the Secured Property in relation to each of the Series I and II on trust for and on behalf of Investors in the relevant Series on the terms of the Security Trust Deed and the relevant Deed of Charge. 11 Charge (a) Investors agree and acknowledge that pursuant to a Deed of Charge, the Issuer (“Chargor”) as legal and beneficial owner charges the Secured Property to the Security Trustee by way of first ranking fixed charge as security for the due and punctual payment and satisfaction of the Secured Obligations. (iv) must perform all of the obligations and comply with all restrictions and limitations applicable to it under the Security Trust Deed and the Deed of Charge. (v) acknowledges that the liability of the Security Trustee is limited under the Security Trust Deed to the amount the Security Trustee can obtain as a final reimbursement from the relevant Separate Trust, being the Secured Property. (c) Investors agree and acknowledge that the Security Trustee’s recourse in respect of the Secured Obligations and under the Deed of Charge is limited to the amount the Security Trustee can obtain by enforcing the Security Trustee’s rights in respect of the Secured Property under the Deed of Charge. (d) Investors acknowledge and agree that the Security Trustee is not responsible or liable for the value of or any change in the value of the Units or the Secured Property or for the sale price of the Security Property provided that the Security Trustee acts in accordance with the Deed of Charge and the Security Trust Deed. (e) Investors agree and acknowledge that their recourse against the Issuer is limited to the Security Property and otherwise they can take no action against the Issuer. (f) Investors acknowledge that they will receive payment only after the costs and expenses of the Security Trustee have been paid. 12 Taxes (a) The Issuer is not liable for any Taxes or other charges (i) payable by the Investor in relation to or in connection with these Terms; or (ii) payable by the Issuer or any other person on, as a consequence of, or in connection with, the purchase, sale or transfer of a Delivery Asset or rights, or any other supply under or in connection with these Terms. (b) The Investor must: (i)pay all Taxes (including goods and services tax) and other charges for which the Investor becomes liable in relation to or in connection with these Terms; or (ii) pay an additional amount to the Issuer on demand equal to any applicable Taxes (including goods and services tax) and other charges for which the Issuer or any other person becomes liable on, as a consequence of, or in connection with, the purchase, sale or transfer of a Delivery Asset or rights, or any other supply under or in connection with these Terms. (b) Each Investor: (i) acknowledges that they are entitled to the benefit of the Security Trust Deed and the Deed of Charge even though they are not a party to it, or were not Investors at the time of execution and delivery of the Deed of Charge; (ii) is taken to have knowledge of the Security Trust Deed and the Deed of Charge; (iii) is bound by the terms of the Security Trust Deed and the Deed of Charge; and 47 10. Terms of the Deferred Purchase Agreement Continued 13 Investor’s representations and warranties 13.1 General By signing the Application Form and lodging it with the Issuer, the Investor represents and warrants to the Issuer (as a continuing representation and warranty) that: (a) the Investor has full legal capacity to make the Application and be bound by these Terms and has taken all actions that are necessary to authorise the Application and be bound by these Terms; (b) the Investor has reviewed these Terms and has made its own independent investigations and appraisals of the taxation, legal, commercial and credit aspects associated with the purchase of the Delivery Assets; (c) the Investor has not relied in any way on any statements made by the Issuer or its related entities or their servants, agents, employees or representatives in relation to these Terms or the deferred purchase of the Delivery Assets and the Investor acknowledges that the Issuer has not made any representations to the Investor regarding the suitability or appropriateness of the deferred purchase of Delivery Assets pursuant to these Terms; (d) the Investor understands that nothing in these Terms or any marketing material associated with these Terms can be considered investment advice or a recommendation to acquire the Delivery Assets; (e) the Investor has obtained all consents which may be required by law to enable the Investor, as the case may be, to acquire the Delivery Assets and to become registered as the holder of the Delivery Assets and the registration of the Investor as the holder of the Delivery Assets will not contravene any law, regulation or ruling or the constitution of the issuer of the Delivery Assets; (f)the Units being applied for will not breach or result in a breach of any exchange controls, fiscal, securities or other laws or regulations for the time being applicable to the Investor and the Investor is not a resident or national of any jurisdiction where the Application for or the Maturity of the Units is prohibited by any law or regulation or where compliance with the relevant laws or regulations would require filing or other action by the Issuer or any of its related bodies corporate; and (g) the Investor acknowledges that the section in the PDS entitled “Taxation” is provided only for the benefit of the Issuer and is necessarily general in nature and does not take into account the specific taxation circumstances of each Investor. The Investor acknowledges that it has sought its own independent advice on the taxation implications relevant to their own circumstances before making an investment decision. 48 Instreet Investment 13.2 Superannuation Funds By signing the Application Form and lodging it with the Issuer an Investor which is the trustee of a Fund (“Fund”) which is a regulated superannuation fund (as that term is defined in the Superannuation Industry (Supervision) Act 1993 (SIS Act )) (Governing Rules) also represents and warrants to the Issuer (as a continuing representation and warranty) that: (a) the Fund has been validly constituted (and where necessary, the relevant documents have been duly stamped according to the laws of the relevant state or territory) and the Fund is continuing as at the date of this agreement; (b) where the trustee is a body corporate, the trustee has been validly constituted; (c) the trustee has been properly appointed as trustee of the Fund; (d) the terms of the governing rules (as that term is defined in the SIS Act) (“Governing Rules”) empower and authorise the Trustee (i) to invest in the Units; and (ii) to borrow as permitted by the SIS Act and (iii) to enter into and be bound by the Deferred Purchase Agreement; (e) the terms of the Governing Rules do not restrict the right of the Trustee to be fully indemnified out of the assets of the Fund to satisfy a liability to any party which is properly incurred by the trustee as trustee of the Fund under the Units; (f) investing in Units will be for the benefit and in the best interests of the Fund and its beneficiaries; and (g) if investing as joint trustees, each applicant declares that the applicants are all trustees of one Fund and there are no other trustees of the Fund and that each joint trustee has the authority to act as agent for all of the joint trustees to give instructions or to receive notices on behalf of all of the joint trustees. 14.1 Set off Rights (a) A ll monetary obligations imposed on the Investor under these Terms are absolute, free of any right to counterclaim or set off and may only be satisfied once the payment has cleared. (b) T he Issuer may set off any amount payable to it by the Investor against any amount payable by the Issuer to the Investor. The Issuer may withhold any amount payable by it to the Investor in satisfaction of any amount payable to it by the Investor. 14.2 Notices 16 (a) The Investor agrees that any notice or statement to be given or demand to be made on the Investor under these Terms or required by the Corporation Act: General provisions 16.1 Currency All amounts payable by either party under these Terms will be paid in the denomination specified in the Product Summary. All calculations will be performed in the currency specified as the “Denomination” in the Product Summary. (i) will be effectively signed on behalf of the Issuer if it is executed by the Issuer, any of its officers, its solicitor or its attorney; (ii) may be served by being delivered personally to, by being left at, by being e-mailed to, or by being posted in a prepaid envelope or wrapper to the Investor’s address (or e-mail address) notified to the Issuer or the Investor’s registered office, place of business, or residence last known to the Issuer, or by being sent to the Investor by facsimile transmission; 16.2 (iii) may be posted on the Issuer website or an announcement made in an Australian newspaper with national coverage, if providing notice in such a manner is allowed by the Corporations Act or any ASIC policy. 16.3 Rounding (b) A demand or notice if: (i) posted will be deemed served two Business Days after posting; (ii) sent by facsimile or electronic transmission will be deemed served on conclusion of transmission; (iii) posted on a website or published in a newspaper will be given the date of posting or publishing. (c) S ervice by any of these methods will be valid and effectual even if the Investor does not receive the document or if the document is returned to the Issuer unclaimed. 15 Amendment of Terms The Issuer may from time to time by notice sent to the Investor make any modification, variation, alteration or deletion of, or addition to these Terms (“Change”) where: No merger The Issuer’s rights under these Terms are additional to and do not merge with or affect and are not affected by any mortgage, charge or other encumbrance held by the Issuer or any other obligation of the Investor to the Issuer, despite any rule of law or equity or any other statutory provision to the contrary. All calculations made by the Issuer for the purposes of these Terms will be made to not fewer than two decimal places. Other than as provided in these Terms, rounding off of numbers will not occur until the final calculation of a relevant amount or number at which time the Investor’s entitlements will be aggregated and that aggregate will be rounded off so that all money amounts are rounded off to the nearest whole cent and all numbers of Delivery Assets are rounded off to the nearest whole number. 16.4 Certificates Any document or thing required to be certified by the Investor or the Issuer must be certified by the Investor (if an individual) or a director, secretary or authorised officer of the Investor (if a company) or the Issuer, as the case requires, or in any other manner that the Issuer may approve. 16.5 Execution by attorneys Each attorney executing an Application Form which binds the Investor to these Terms states that he, she or it has no notice of revocation or Suspension of the power of attorney under which the attorney executes that form. (a) the Change is one determined by the Issuer as being required under either of clauses 5 or 6 of these Terms; (b) the Change is necessary or desirable in the reasonable opinion of the Issuer to comply with any statutory or other requirement of law; or (c) the Change is desirable to correct an inconsistency or error in these Terms (but only if such Change does not, in the opinion of the Issuer materially adversely affect, prejudice the interests of the Investor). The Issuer will give the Investor notice of any Change to these Terms and the Investor will be bound by any such Change at the time the Investor is given such notice. 49 10. Terms of the Deferred Purchase Agreement Continued 16.6 Appointment of Agent 16.8 The Investor irrevocably appoints the Issuer and its nominees and any of their directors, secretaries and officers whose title includes the word “director” from time to time jointly and severally as agent of the Investor to do (either in the name of the Investor or the agent) all acts and things: A single or partial exercise of a right by the Issuer does not preclude another exercise or attempted exercise of that right or the exercise of another right by the Issuer. Failure by the Issuer to exercise or delay in exercising a right does not prevent its exercise or operate as a waiver. (a) necessary to give effect to the Terms, including but without limitation to completing or amending any Application Forms (if the Issuer, at its absolute discretion, has accepted the Application Form); (b) that the Investor is obliged to do under these Terms; (c) which, in the opinion of the Issuer, are necessary or desirable in connection with (i) these Units; (ii) payment of any moneys to either the investor, the Issuer or any related body corporates of the Issuer; (iii) the Maturity process, including but without limitation to, if an Early Maturity Event occurs; (iv)any substitution, amendment, variation or adjustment of the Units or these Terms pursuant to these Terms; (v) any Issuer Buy-Back; (vi) any Market Disruption Event; (vii) the Delivery Assets, including but without limitation to the delivery or sale of the Delivery Assets (d) which in the opinion of the Issuer are necessary or desirable in connection with the protection of the Issuer’s interests or the exercise of the rights, powers and remedies of the Issuer under these Terms. 16.7 Invalid or unenforceable provisions If a provision of these Terms is invalid or unenforceable in a jurisdiction, it is to be read down or severed in that jurisdiction to the extent of the invalidity or unenforceability, and that fact does not affect the validity or enforceability of that provision in another jurisdiction or the remaining provisions. 50 Instreet Investment Waiver and exercise of rights 16.9 Assignment and transfer of interests (a) The Issuer may transfer its rights and obligations, under these Terms at any time by giving notice to the holder of the Units. (b) Subject to clause 1.3, the rights and obligations under these Terms may be transferred or novated by an Investor in whole only, not in part, with the prior consent of the Issuer. (c) When an Investor deals with a Unit in a manner that does not involve the transfer of legal ownership of the Unit, the Issuer has no duty to record the dealing on the Register. Each Beneficial Interest corresponding to the Units will pass to a new Investor upon registration of the transfer of those units in the Register. 16.10 Recording conversations The Investor acknowledges that conversations between the Investor and the Issuer (or any officer of the Issuer or an adviser) may be tape-recorded. The Investor consents to the tape recording and its use (or any transcript of the recording) in any proceedings that may be commenced in connection with these Terms. 16.11 Calculations and references to dates and times Calculations or determinations which are to be made on or by reference to a particular day, are to be made on or by reference to that day in the place and time zone of the Relevant Exchange to which that calculation or determination relates. 16.12 Payments by the Issuer All amounts payable by the Issuer under these Terms will be paid to the Investor’s Nominated Account. If the Investor has not nominated a Nominated Account, payment will be made by the Issuer drawing a cheque made payable to the Investor which will be sent to the address recorded in the Register for that Investor, and in doing so the Issuer is discharged from its obligations under these Terms. 16.13 Governing law and jurisdiction These Terms are governed by the laws of New South Wales. The Investor irrevocably and unconditionally submits to the non-exclusive jurisdiction of the courts of New South Wales and waives, but without limitation to any claim or objection based on absence of jurisdiction or inconvenient forum. 16.14 Terms of Deferred Purchase Agreement prevail If there is an inconsistency between the terms and conditions of the Deferred Purchase Agreement and statements made in the PDS, the terms and conditions of the Deferred Purchase Agreement prevail. 16.15 Time is of the essence Time is of the essence in respect of the obligations of the Investor under these Terms. 16.16 Discretions Any determination made by the Issuer will be at its sole discretion, acting in good faith and in a commercially reasonable manner and will be conclusive and binding on all parties, except in the case of manifest error. (b) Where a word or phrase is defined, its other grammatical forms have a corresponding meaning. (c) Headings are for convenience only and do not affect interpretation. (d) If a payment or other act must (but for this clause) be made or done on a day that is not a Business Day, then it must be made or done on the next Business Day. (e) If a period occurs from, after or before a day or the day of an act or event, it excludes that day. (f) These Terms may not be construed adversely to a party only because that party was responsible for preparing them. (g) Any term not defined in these Terms and which is defined in the PDS has the same meaning as in the PDS unless the context otherwise requires. (h) All references to time are to time in Sydney, Australia (unless otherwise stated). 16.18 Interpretation (a) In these Terms, unless the context requires another meaning, a reference: (i) to the singular includes the plural and vice versa; (ii) to a document (including these Terms) is a reference to that document (including any schedules and annexures) as amended, consolidated, supplemented, novated or replaced; (iii) to a person (including a party) includes an individual, company, other body corporate, association, partnership, firm, joint venture, trust or government agency, and it also includes the person’s successors, permitted assigns, substitutes, executors and administrators; (iv) to a law is a reference to that law as amended, consolidated, supplemented or replaced and it includes a reference to any regulation, rule, statutory instrument, by-law or other subordinate legislation made under that law, or any legislation, treaty, judgment, rule of common law or equity or rule of any applicable stock exchange; 51 11. Definitions Capitalised words have the following meaning given to them, unless the context requires otherwise. All references to clauses are to clauses in the Terms. “Accretions” means all rights, accretions and entitlements attaching to any Reference Assets or Delivery Assets after the Commencement Date including but without limitation to, all voting rights, all dividends and all rights to receive dividends and other distributions or shares, notes, options, units or other financial products exercisable, declared, paid or issued in respect of the Delivery Asset; (b) where the Asset is an index: (i) the Asset is suspended or ceases to be published for a period of 24 hours or more; (ii) the Asset is not calculated and announced by the index sponsor, but is calculated and announced by a successor to the index sponsor; (iii) the Asset is replaced by a successor index using the same or a substantially similar formula for and method of calculation; or (iv) there is a Suspension or material limitation on trading of securities generally on a Relevant Exchange or Related Exchange for a period of 24 hours or more; (v) the index sponsor or any successor makes a material change in the formula for or the method of calculating the Asset or the basket constituents of the index or in any way materially modifies that Asset; “Adjustment Event” means any of the following in respect of the Units, and where relevant, in respect of one or more of the Reference Assets (“Assets”): (a) where the Asset is a security or interest in a managed investment scheme: (i) any event which results in the Asset being consolidated, reconstructed, sub-divided or replaced with some other form of security or property; (ii) the issuer of the Asset reduces its share capital through either a cash return of share capital, capital distribution or otherwise (whether or not resulting in the cancellation of Securities in the Underlying Parcel); (c) where the Asset is a futures contract: (i) the temporary or permanent discontinuance or unavailability of the Price Source; (ii) the failure to obtain at least three quotations as requested from relevant dealers, if pricing is determined by reference to dealer quotes; (iii) the issuer of the Asset declares a rights issue or restructures its share capital in any manner; (iv) a scheme of arrangement, quasi-scheme of arrangement or merger in the nature of a scheme of arrangement occurs in relation to the issuer of the Asset; (iii)the permanent discontinuation of trading in the relevant futures contract on the relevant exchange; (iv) the disappearance of, or of trading in, the relevant asset underlying the futures contract; (v) the disappearance or permanent discontinuation or unavailability of a price for the relevant futures contract notwithstanding the availability of the Price Source; (vi) the occurrence of a material change (as determined by the Issuer at its discretion) in the formula for or the method of calculating the relevant futures contract price; and (vii) the occurrence of a material change (as determined by the Issuer at its discretion) in the content, composition or constitution of the relevant futures contract, or the asset underlying the futures contract. (v) the issuer of the Asset makes a buy-back offer in relation to all or any of the Assets; (vi) the issuer of the Asset issues bonus shares, units or other property to holders of the Asset; (vii) a takeover bid is made or announced for all or any of the Assets; (viii) any part of the Asset is or becomes subject to compulsory acquisition under the Corporations Act or otherwise; (ix) the issuer of the Asset declares or makes a non-cash Dividend or Special Dividend; (x) any event occurs which constitutes a Disposal Event; or (xi) the issuer of the Asset is insolvent by reason of the voluntary or involuntary liquidation, bankruptcy, insolvency, dissolution or winding-up of or any analogous proceeding affecting the issuer of the Asset. (d) any Force Majeure Event occurs, or any other event occurs which Issuer determines in good faith results in the performance of its obligations having become or becoming, in circumstances beyond its reasonable control, impossible, unlawful, illegal or otherwise prohibited; (e) a Change of Law occurs; (f)the Issuer is unable, on any date on or after the Commencement Date up to and including the Settlement Date (which includes the Maturity Date) or any other relevant date, after using commercially 52 Instreet Investment reasonable efforts, to (i) acquire, establish, reestablish, substitute, maintain, unwind or dispose of any transaction(s) or asset(s) it deems necessary to hedge the risk of entering into and performing its obligations with respect to the Units, or (ii) realise, recover or remit the proceeds of any such transaction(s) or asset(s); (g) the Issuer would, on any date on or after the Commencement Date up to and including the Settlement Date (which includes the Maturity Date) or any other relevant date, incur a materially increased (as compared with circumstances existing on the Commencement Date) amount of tax, duty, expense or fee (other than brokerage commissions) to (i) acquire, establish, reestablish, substitute, maintain, unwind or dispose of any transaction(s) or asset(s) it deems necessary to hedge the risk of entering into and performing its obligations with respect to the Units, or (ii) realise, recover or remit the proceeds of any such transaction(s) or asset(s), provided that any such materially increased amount that is incurred solely due to the deterioration of the creditworthiness of the Issuer will not be deemed an Adjustment Event; (h) the Issuer’s hedging arrangements are terminated, adjusted, amended, varied, changed, suspended, delayed, postponed or closed out for any reason as determined by the Calculation Agent for those hedging arrangements or any Asset relevant to the hedging arrangement is terminated suspended, adjusted, amended, varied, changed, delayed, postponed or closed out in any way; (i) a security granted by the Asset, its manager or certain service providers becomes enforceable or any of their trading or dealing arrangements become terminable because of default by them; (j) the net asset value of the Asset is not calculated or published as required, or the timing of the calculation or publication changes, or the methodology used changes; (k) information about the Asset is not published or provided as required; (l) trading in the Asset is suspended or restricted; (m) the Asset, its manager or certain service providers become insolvent by reason of the voluntary or involuntary liquidation, bankruptcy, insolvency, dissolution or winding-up of or any analogous proceeding affecting the issuer of the Asset; (n) there is an event in respect of the Asset or its manager by which: (i) the entity will be merged with another entity (unless it will continue as an entity without reclassification or change of its shares/units); or (ii) there is a change in control of the entity; (o) a securities lending agreement (if any) is terminated, adjusted or changed; (p) any actual or proposed event that may reasonably (in the Issuer’s opinion) be expected to lead to any of the events referred to in paragraphs (a) to (n) above occurring; (q) any other event occurs which the Issuer determines is an adjustment event for Units for the purposes of clause 6 of the Terms; “Advisor Fee” has the meaning given to it in the Product Summary in this PDS; “Affected Party” as defined in the Hedge, means the party affected by the Termination Event (as specified in the Hedge). “Agency Sale Option” means the agreement between the Investor and the Issuer entered into on receipt by the Issuer of a Notice of Maturity specifying the Investor’s election to use the Agency Sale Option, under which the Issuer will sell, or procure the sale of, the Delivery Parcel for and on behalf of, at the direction of and as agent for the Investor on or as soon as practicable after the Settlement Date in accordance with clause 4.4 of the Terms of the Deferred Purchase Agreement in this PDS; “Application” means an offer by the Investor to the Issuer to acquire the Delivery Parcel on a deferred basis on the terms and conditions set out in the Terms; “Application Form” means the Application Form attached at the back of the PDS; “Arranger” means the person or Entity listed as such in this PDS; “Asset” means the Reference Index, Reference Asset, Delivery Asset, or any component or constituent thereof, or a factor relevant to the calculation of, any payment or any component of the Units as specified in the Product Summary as such; “ASTC Settlement Rules” means the settlement rules of the ASX Settlement and Transfer Corporations Pty Limited as amended or substituted from time to time; “ASX” means Australian Securities Exchange as operated by ASX Limited (ABN 98 008 624 691); “ATO” means the Australian Taxation Office; “AUSTRAC” means the Australian Transaction Reports and Analysis Centre which regulates the Anti-Money Laundering and Counter-Terrorism Financing Act 2006; “Barrier Level” has the meaning given to it in the Product Summary in this PDS if any; “Barrier Event” has the meaning given to it in the Product Summary in this PDS if any; “Beneficial Interest” means the beneficial interest in the Portion of the Delivery Assets in accordance with clause 9 of the Terms; 53 11. Definitions Continued “Break Costs” means all costs, expenses and losses incurred by the Issuer (including any upfront selling fees paid to an adviser that may be applicable) and notified by the Issuer as payable by the Investor as a result of: (a) the determination of an Early Maturity Date or Buy-Back Date or other early termination of the Deferred Purchase Agreement; (b) the termination or reversal of any arrangements, service contracts or hedge position entered into by the Issuer in connection with Units which is terminated early; or “Charge” or “Deed of Charge” means, in respect of a Separate Trust and a Series, the deed entitled “deed of charge” for that Separate Trust and Series entered into between the Chargor and the Security Trustee dated 15 January 2010, as amended from time to time or the charge over the Secured Property created by that deed, as appropriate. “Chargor” has the meaning set out in clause 11 of the Section 10 “Terms of the Deferred Purchase Agreement”. “Closing Price” has the meaning given in the Product Summary; (c) any loss of profits that the Issuer may suffer by reason of the early termination of the Deferred Purchase Agreement; “Commencement Date” means the date specified in the Investor’s Confirmation Notice as the “Commencement Date” for Units held; “Break-even Level” has the meaning given to it in the Product Summary in this PDS; “Confirmation Notice” means a notice provided by the Issuer to an Investor in accordance with clause 1.3(c) of the Terms; “Business Day” has the meaning given in this PDS or if none is specified means: (a) a day on which banks are open for business in Sydney and Melbourne; or (b) in relation to any calculations involving a Relevant Exchange or a Reference Asset a day on which banks are open for business in the primary jurisdiction in which that Relevant Exchange is located or in which the Reference Asset is traded, but does not include a Saturday, Sunday or public holiday; “Buy-Back Date” has the meaning given in the Product Summary; “Buy-Back Price” has the meaning given in Section 7 “Sale of Units before Maturity – Issuer Buy-Back” of this PDS; “Calculation Agent” means Instreet Investment Limited (ABN 34 128 813 016) undertaking such role as determined by the Issuer and by reference to the Issuer’s hedge and/or other arrangements in relation to the Units; “Change of Law” means that due to the adoption of, or any change in any applicable law or regulation (including any tax legislation) or due to the promulgation of or any change in the interpretation (by any court, tribunal or regulatory authority with competent jurisdiction) of any applicable law or regulation (including any action taken by a taxing authority) the Issuer determines in good faith that it has become illegal for any party to hold, acquire or dispose of the relevant assets or the Issuer or any other party will incur a materially increased cost in performing its obligations under the Units (including due to any increase in tax liability, decrease in tax benefit or other adverse effect on its tax position); 54 Instreet Investment “Corporations Act” means the Corporations Act 2001 (Cth) as amended from time to time; “Default under Specified Transaction” includes where a relevant party under the Hedge Contract defaults under a Specified Transaction and this results in an acceleration or early termination of that Specified Transaction (or other transactions under the same documentation), defaults on the last payment date, or any payment on early termination of, a Specified Transaction or repudiates or otherwise challenges the validity of a Specified Transaction. Where “Specified Transaction” means any swap, forward, future, option or other derivative transaction entered into between the parties to the Hedge Contract, any similar transaction or combination of these transactions and any other transactions specified as such by the parties. “Deferred Purchase Agreement” or “DPA” means the agreement under which the Investor agrees to purchase the Delivery Parcel from the Issuer on a deferred basis on the terms and conditions set out in the Terms and the PDS including the Product Summary; “Delivery Asset” means the Delivery Asset(s) specified in the PDS or determined by the Issuer in accordance with the Terms; “Delivery Asset Price” means, as calculated by the Issuer in its absolute discretion, the price specified in the Product Summary of this PDS or if none is specified, the price per Delivery Asset at which the Issuer (or its nominee) acquires or purchases, in connection with the Units, the Delivery Asset on the Exchange Business Day immediately following the Maturity Date (or in the case of an Early Maturity, the Early Maturity Date), unless it is not possible or practical to determine the price of the Delivery Asset at that time or as specified in the Product Summary, in which case the Issuer may, at its absolute discretion, nominate another time or period of time to determine the average weighted price at which the Issuer (or its nominee) acquires or purchases, in connection with the Units, the Delivery Asset; (d) Nationalisation or Insolvency (as each of those terms is defined in the confirmations under the Hedge) occurs and the Chargee determines that the Transactions should be cancelled; or “Delivery Costs” means any incidental costs or expenses incurred by the Issuer in relation to the transfer of any Delivery Assets to or for the benefit of the Investor following Maturity or Early Maturity For the avoidance of doubt, this includes, but without limitation to, any amounts paid or incurred by the Issuer or its nominees on account of GST to the extent that input tax credits are not available or on account of any other Taxes incurred as a result of transferring the Delivery Assets on Maturity or Early Maturity; (e) another event of default (however described) occurs under a Transaction Document and: “Delivery Parcel” has the meaning given in the Product Summary or, if none is given, means the number of Delivery Assets to be delivered by the Issuer to the Investor on the Settlement Date as determined by the following formula: i. the date the Chargor became aware of the default or ought reasonably to have become aware of the default; and ii. receipt by the Chargor of a notice from the Security Trustee requiring it to remedy the default. (Final Value x No. of Units Held by an Investor) – any applicable Delivery Costs Delivery Asset Price “Disposal Event” means an event which gives rise to an obligation on the Issuer under law to dispose of all or part of the Delivery Assets, Reference Assets or Reference Index; “Dividend” means an ordinary dividend or distribution; “Early Maturity” means accelerated maturity by the Issuer in accordance with clause 5 of the Terms; “Early Maturity Date” means the date notified to the Investor as such in the Early Notice of Maturity; “Early Maturity Event” has the meaning given in clause 5.1 of the Terms; “Early Notice of Maturity” means the notice provided by the Issuer to the Investor notifying the Investor of the occurrence of an Early Maturity Event (if relevant) and that an Early Maturity Event will take place on the specified Early Maturity Date. In relation to a Barrier Event, the Early Notice of Maturity will specify the day that the Barrier Event occured; “Early Maturity Value” means the fair economic value of the Unit at or around 5:00 pm (Sydney time) on the Early Maturity Date as determined by the Issuer at its absolute discretion, unless it is not possible or practical to determine the fair economic value of the Unit at that time, in which case the Issuer may nominate another time to determine the Early Maturity Value. Where a Barrier Event has occurred, the Early Maturity Value will be zero; “Event of Default” occurs under the Charge if: (a) the Chargor fails to perform or observe a material obligation under a Transaction Document; (b) an Event of Default (as defined in the Hedge) occurs; (c)a Termination Event (as defined in the Hedge) with respect to which the Chargor is the Affected Party (as defined in the Hedge) occurs; or (i) the Security Trustee considers that the failure or default cannot be remedied; or (ii) the Security Trustee considers that the failure or default can be remedied but it is not remedied to the Security Trustee satisfaction within 3 Business Days (or any longer period the Security Trustee approves) from the earlier of: (f) a representation or warranty made or deemed to be made by the Chargor in, or in connection with, the Transaction Documents is untrue or misleading (by omission or in any other way) in any material respect when made or repeated; (g) a proceeding is commenced against the Chargor or in relation to any Secured Property which does or may threaten the Chargor’s entitlement to any Secured Property; (h) the Charge ceases for any reason to be a first ranking charge or an obligation of the Chargor ranks ahead of or equally with the Secured Money; “Event of Default” as defined in the Hedge, includes the occurrence of the following events: (a) failure to pay or deliver, when due, any payment or delivery under the Hedge; (b) breach or repudiation by either party of the Hedge; (c) default under a credit support document (such as a credit support annex); (d) a representation made by a party to the Hedge proves to have been incorrect or misleading in any material respect when made or repeated (or deemed to have been made or repeated); (e) default by a party in a transaction specified in the Hedge; (f) if applicable in the Hedge, default under any other agreements of a specified type where the aggregate principal amount of such agreements exceeds a specified threshold amount; (g) bankruptcy event in relation to a party (including the party being dissolved, becoming insolvent, having bankruptcy proceedings instituted against it, having a liquidator, receiver or other similar official appointed); and 55 11. Definitions Continued (h) a party consolidates or amalgamates with, or merges with or into, another entity and the other entity does not assume all the obligations of the party under the Hedge. “Exchange Business Day” means a day that is both a Business Day and a Trading Day; “Final Value” per Unit means the value specified in the Product Summary as the “Final Value” and is calculated in accordance with the formula in the Product Summary; “Force Majeure Event” means an event or circumstance beyond the reasonable control of a party that prevents one or more parties from performing their obligations under this Agreement; “Government Agency” means: (a) a government, whether foreign, federal, state, territorial or local; (b) a department, office or minister of a government acting in that capacity; or (c) a commission, delegate, instrumentality, agency, board or other governmental, semi-governmental, administrative or judicial, monetary or fiscal body, department, tribunal, entity or authority, whether statutory or not and includes any self-regulatory organisation established under statute or any stock exchange; “GST” has the same meaning as that in the A New Tax System (Goods and Services Tax) Act 1999 (as amended from time to time); “Hedge” and “Hedge Contract” mean any contract pursuant to which the Issuer hedges its obligations under this DPA and including the ISDA Master Agreement entered into by and between the Chargor and the Hedge Provider (the counterparty to the Hedge with the Issuer) from time to time including the Schedules, Credit Support Annex and Confirmations relating to hedging the Chargor’s obligations under the Units for Series I and II. “Hedge Provider” means an entity with whom the Issuer enters into a Hedge. “Identification Form” means the identification form attached to or accompanying the PDS; “Instreet” means Instreet Investment Limited, the Arranger for investors into the Units and will coordinate the Units. Instreet is an authorised representative (ASIC Representative) No. 322612) of EA Financial, LP under Australian Financial Service Licence No. 246801. EA Financial, LP is responsible for overseeing the services of Instreet but does not guarantee or otherwise provide assurance in respect of the obligation of Instreet or the Issuer. 56 Instreet Investment “Instreet Group” means Instreet Structured Investment Pty Ltd, Instreet Investment Limited and their affiliates, parent entities and subsidiaries. “Instreet Structured Investment” means Instreet Structured Investment Pty Limited. “Investor” means the person or entity whose name is entered on the Register from time to time during the Investment Term; “Investment Term” means, in respect of Units held by an Investor, the time period from the Commencement Date to the scheduled Maturity Date as specified in the Timetable; “Issuance Observation Dates” means the dates specified in the Timetable and found at the beginning of this PDS if any; “Issue Closing Date” means the date specified in the Timetable in the PDS as the cutoff time for initial investments; “Issue Opening Date” means the opening dates of the Offer Period as specified in the Timetable in this PDS as the time from which applications for Units will be accepted; “Issue Price” means the price specified in the Product Summary as the amount payable by an Investor who applies during the Offer Period; “Issuer” has the meaning given to it in the Product Summary; “Issuer Buy-Back” means an Investor requested Buy-Back of Units by the Issuer in accordance with the Terms; “Issuer Buy-Back Form” means the form by that name attached at the back of this PDS; “Majority Investors” in respect of a Separate Trust, means Investors who together hold more than 50% in value of the Total Outstanding for the Series relating to that Separate Trust; “Market Disruption Event” means the occurrence or existence on any Business Day of any of the following events, in the determination of the Issuer: (a) the Suspension or material limitation of trading in one or more of the Assets or in securities or futures contracts generally on the ASX, Relevant Exchange, Related Exchange or a market associated with any of the Assets; or (b) any of the Assets or prices relating to the Assets ceases to exist or is materially changed, fails to be calculated and published, or the method of calculation materially changes; or (c) the declaration of a general moratorium in respect of banking activities in the country where any Relevant Exchange or any Related Exchange is located; “Offer Period” means the offer period for Units with open and close dates as specified in the Timetable found at the beginning of this PDS; (d) a Market Disruption Event (however defined) under the Hedge; or “Parcel of Secured Property”, in respect of a Separate Trust, means the Secured Property of that Separate Trust and includes, but without limitation to, the Trust Fund for that Separate Trust; (e) any similar event the Issuer reasonably declares to be a Market Disruption Event, including a force majeure event. For the purposes of this definition, (1) a limitation on the hours and number of days of trading will not constitute a Market Disruption Event if it results from an announced change in the regular business hours of the Relevant Exchange or any Related Exchange; (2) a limitation on trading imposed during the course of a day by reason of movements in price otherwise exceeding levels permitted by the Relevant Exchange or any Related Exchange will constitute a Market Disruption Event; and (3) issues of materiality are to be determined in the discretion of the Issuer; “Maturity” means the settlement of the deferred purchase of the Delivery Parcel in accordance with clause 4 of the Terms other than as a result of Early Maturity; “Maturity Date” means the date specified in the Timetable in the PDS as the “Maturity Date”, unless there is an Early Maturity under clause 5 of the Terms, in which case the Maturity Date will be the Early Maturity Date; “Maturity Observation Dates” means the dates specified in the Timetable of this PDS if any; “Product Summary” means the section described as the “Product Summary” in Section 1 of this PDS; “PDS” means this Product Disclosure Statement, including any Application Form and any Issuer Buy-Back Form, for the relevant Units; “Portion” means the number of Delivery Assets held by the Issuer on the Commencement Date for a particular Series determined by the Issuer in its discretion, divided by the number of Units on issue in that Series and disclosed in the Confirmation Notice; “Price Source” means the publication or other origin reporting or publishing the price of a Reference Asset; “Reference Index” has the meaning given in the Product Summary, if any; “Reference Index Return” means the amount calculated in accordance with the formula set out for the Reference Index Return in Section 1 “Product Summary”; “Reference Asset” has the meaning given in the Product Summary, if any; “Minimum Buy-Back Amount” has the meaning given to it in the Product Summary; “Registrar” means the person or entity identified in the Product Summary or any other registrar appointed by the Issuer from time to time; “Minimum Investment” means the amount or number of Units specified in the Product Summary as the “Minimum Investment”; “Register” means the register of holders of Units maintained by the Issuer or a person approved by the Issuer; “Nominated Account” means the transactional banking account held with an Australian bank which is nominated by the Investor on its Application Form; “Relevant Exchange” means in the case of: “Notice of Maturity” means the notice sent to Investors at least 20 Business Days prior to the Maturity Date in which an Investor may elect to participate in the Agency Sale Option; “Notional Exposure” means the amount of notional exposure per Unit an Investor obtains, as specified in Section 1 “Product Summary”; “Observation Date” means the date specified in the Timetable of this PDS if any; “Offer” means the offer of an agreement to purchase the Delivery Assets specified in the Product Summary on certain terms including deferred delivery under the terms of this PDS; (a) any exchange traded Unit or financial product, the primary exchange upon which that financial product is traded; and (b) an index, the primary exchange upon which the financial products which primarily constitute that index are traded; and (c) a commodity, any exchange where contracts or futures relating to the commodity are traded; or as determined at the absolute discretion of the Issuer; “Related Exchange” means each exchange or quotation system where trading has a material effect (as determined by the Issuer) on the overall market for the futures, options, securities or other assets underlying the Reference Index are traded. 57 11. Definitions Continued “Sale Monies” means the monies from the sale of the Delivery Parcel obtained by the Issuer (or its nominee) on behalf of the Investor under the Agency Sale Option, less Break Costs and if applicable Delivery Costs, including brokerage, applicable to the sale of the Delivery Parcel; “Scheduled Trading Day” means, in respect of a Reference Asset or Delivery Asset, any day on which the Relevant Exchange and/or related exchange in respect of such Reference Asset or Delivery Asset is scheduled to be open for trading for their respective regular trading sessions; “Secured Money” means all moneys, obligations and liabilities of any kind that may now be or might at any time in the future become due, owing or payable, whether actually, contingently or prospectively, to the Investors in relation to the Units including, but without limitation to, on account of principal, interest, fees, expenses, indemnity payments, losses or damages and irrespective of: (a) the capacity of the Chargor (whether as principal, agent, trustee, beneficiary, partner or otherwise); (b) w hether the Chargor is liable as principal debtor or as surety; (c) whether the Chargor is liable alone, jointly or jointly and severally with another person; (d) whether or not the money, obligation or liability is owed to the Investor or to its account as a result of an assignment, transfer or other dealing with or without the Chargor’s consent; or (e) whether the money, obligation or liability is owed or secured before or after the date of: (i) the Deed of Charge; or (ii) any assignment of the Deed of Charge or any other Transaction Document. “Secured Obligations” means each of the obligations of the Chargor in respect of the DPA to or for the account of the Investors, including but without limitation to, the obligation to pay the Secured Money. “Secured Property” as defined in the Deed of Charge, means all of the present and future right, title, benefit and interest of the Chargor: (a) under, pursuant to or in connection with the Hedge (subject to any rights of setoff and netting under a Hedge); (b) all proceeds, property, money received by the Issuer in connection with the Units, including any investments into which any of those proceeds are converted, including but without limitation to, any Delivery Assets and the proceeds of those investments including any Sale Proceeds; and (c) and other assets charged by the Chargor to the Security Trustee; 58 Instreet Investment “Security” means in respect of a Separate Trust, each Charge for that Separate Trust and each other deed or agreement entered into by Instreet Structured Investments in favour of the Security Trustee after the execution of the Security Trust Deed to be held for that Separate Trust, to secure the Secured Money in respect of that Separate Trust or any part of it. “Security Interest” means a right, interest, power or arrangement in relation to an asset which provides security for, or protects against default by a person in, the payment or satisfaction of a debt, obligation or liability, and includes a mortgage, charge, bill of sale, pledge, deposit, lien, encumbrance, hypothecation, arrangement for the retention of title or any arrangement under which money or claims to, or the benefit of, any party or creditor may be applied, setoff or made subject to a combination of accounts. “Security Trustee” means AET Structured Finance Services Pty Limited ABN 12 106 424 088 or any other security trustee appointed in accordance with the Security Trust Deed from time to time; “Security Trust Deed” means the deed entitled “security trust deed” entered into between the Security Trustee and the Issuer dated 15 January 2010, as amended from time to time. “Separate Trust” means each of the trusts, one for each Series and Parcel of Secured Property, constituted under the Security Trust Deed and the relevant Deed of Charge. “Series” means each class of Unit with the particular features specified in this PDS that applies to each class or “Series”; “Settlement Date” means the tenth Exchange Business Day after the Maturity Date or such other date as determined by the Issuer at its discretion as is reasonably necessary for the Issuer to fulfill its obligations under the Terms; “Settlement Notice” means the notice from the Issuer to Investors following settlement an Early Maturity or a Buy-Back Date; “Special Dividend” means any special or abnormal dividend or distribution in respect of securities (including a distribution of income or capital) and includes a dividend or distribution described by the entity declaring that dividend or distribution as: (a) special, abnormal, extraordinary, additional or extra; (b) part of a scheme of arrangement or takeover consideration; (c) part of a special distribution involving a return of capital, or are otherwise characterised by the ASX or the Relevant Exchange as a special dividend or special distribution. “Strike Level” has the meaning given to it in the Product Summary in this PDS if any; “Suspension” means any temporary cessation of the trading or quotation of the Delivery Asset, including a trading halt on the ASX, the Relevant Exchange or any Related Exchange (as the context requires); “Transaction Documents” means in respect of a Series: “S&P” means Standard & Poor’s, a division of The McGraw-Hill Companies Inc.; (c) the Security Trust Deed; “Tax” or “Taxes” means any income tax, capital gains tax, goods and services tax, withholding tax, stamp, registration and other duties and other related taxes, levies, imposts, deductions, interest, penalties and charges; “Termination Event” as defined in the Hedge, includes the occurrence of the following events: (a) illegality i.e. it becomes unlawful for any obligations entered into under the Hedge to be performed; (b) force majeure event; (c) due to changes in taxation law, action taken by a taxing authority, court proceedings or the merger, consolidation or amalgamation of a party the amount of tax payable by a party is increased; and (d) if applicable in the Hedge, on the merger, consolidation or amalgamation of a party, the credit rating of that party is materially weaker. “Termination Payment” means the amount determined by the Issuer at its absolute discretion and by whatever means the Issuer deems appropriate. Without limiting the foregoing, in determining the Termination Payment, the Issuer may adjust the Termination Payment for any costs, losses or expenses that it incurs in relation to the Early Maturity, including but without limitation to, Delivery Costs, Break Costs, administrative costs, costs of unwinding any hedge put in place for the purposes of meeting its obligations under the Terms, and any cost of funding or any loss of bargain. Where a Barrier Event has occurred, the Termination Payment will be zero; “Terms” or “Terms of the Deferred Purchase Agreement” means the terms and conditions of the Deferred Purchase Agreement and this PDS on which the Investor agrees to acquire the Delivery Parcel from the Issuer; “Timetable” means the timetable set out in the beginning of this PDS; (a) the Deed of Charge for that Series; (b) the Hedge for that Series; (d) the Product Disclosure Statement including the Terms of the Deferred Purchase Agreement; and (e) each other document which the Chargor and the Security Trustee agree in writing is a Transaction Document for the purposes of the Security Trust Deed; (f) each DPA for that Series; and (g) each document entered into or provided under any of the documents described in paragraphs (a), (b), (c), (d) or (e) for the purpose of amending or novating any of those documents. “Trust Fund” means, for each Separate Trust, all property, rights and interests which the Security Trustee acquires after the execution of the Security Trust Deed to hold on the Separate Trust created by the Security Trust Deed including: (a) the benefit of the Security; (b) the benefit of any other agreement that it enters into in its capacity as trustee of the trusts created by the Security Trust Deed; and (c) all property or money which represents the proceeds of enforcement, realisation or sale of any such property, rights or interests, any investment into which any of those proceeds are converted and the proceeds of any of those investments. “Units” or “Unit” or “DPA Units” means a Deferred Purchase Agreement entered into by the Issuer and the Investor. The total number of Units held by the Investor will be notified by the Issuer to the Investor in the Confirmation Notice provided by the Issuer in accordance with clause 1.3(c) of the Terms; “Upfront Fee” has the meaning given to it in the Product Summary in this PDS; “Total Investment Amount” means an amount equal to the number of Units purchased by an Investor multiplied by the Issue Price; “Total Outstanding”, in respect of a Series, means the aggregate of the Secured Money to all Investors under that Series; “Trading Day” means, in respect of the ASX and any of the Relevant Exchanges, a day on which that exchange is open for normal trading; 59 Appendix A - Direct Debit Request Service Agreement This document sets out the terms and conditions of the Direct Debit Request Service Agreement between the Investor and Instreet Structured Investment Pty Limited (ABN 82 140 407 558) and Link. 3. 1. 4. Definitions Amendments by Us We may vary any details of this Agreement or a Direct Debit Request at any time by giving You at least fourteen (14) days’ written notice. Amendments by You The following definitions apply in this agreement. Changes to the arrangement “Account” means the account held at Your Financial Institution from which We are authorised to arrange for funds to be debited. You may change, stop or defer a Debit Payment, or terminate this agreement by providing Us with at least fourteen (14) days’ notification by writing to: “Agreement” means this Direct Debit Request Service Agreement between You and Us. Instreet Structured Investments Pty Ltd PO Box R380 Royal Exchange NSW 1225 “Banking Day” means a day other than a Saturday or a Sunday or a public holiday listed throughout Australia. “Debit Day” means the day that payment by You to Us is due. “Debit Payment” means a particular transaction where a debit is made. “Direct Debit Request” means the Direct Debit Request between Us and You. “Our, Us or We” means Instreet Structured Investment Pty Limited (ABN 82 140 407 558) or Link Market Services Limited (ABN 54 083 214 537) which You have authorised by signing a Direct Debit Request. “PDS” means the document to which this Agreement was attached and which sets out the terms of the offer of the Link DS Series I & II Deferred Purchase Agreements. “You or Your” means the person(s) who have signed or authorised by other means the Direct Debit Request. “Your Financial Institution” is the financial institution where You hold the Account that You have authorised Us to arrange to debit. 2. Debiting Your account 1. By signing an Application Form that contains the Direct Debit Request, You have authorised Us to arrange for funds to be debited from Your Account. You should refer to the Direct Debit Request and this Agreement for the terms of the arrangement between You and Us. 2. We undertake to debit Your Account for the Total Investment Amount in respect of your Application for Units under this PDS. The drawing under this Direct Debit arrangement will occur at the end of the Offer Period. 3. We will only arrange for funds to be debited from Your Account as authorised in the Direct Debit Request. If the Debit Day falls on a day that is not a Banking Day, We may direct Your Financial Institution to debit Your Account on the following Banking Day. If You are unsure about which day Your Account has or will be debited, You should ask Your Financial Institution. 60 Instreet Investment or by telephoning Us at 1300 954 678 during business hours or arranging it through Your Financial Institution. 5. Enquiries Direct all enquiries to Us, rather than to Your Financial Institution. Enquiries should be made at least fourteen (14) working days prior to the next scheduled Debit Day. All communication addressed to Us should include Your name as specified on Your Application Form. 6. Confidentiality All personal customer information held by Us will be kept confidential. We will make reasonable efforts to keep any such information that We have about You secure and to ensure that any of our employees or agents who have access to information about You do not make any unauthorised use, modification, reproduction or disclosure of that information. We will only disclose information that We have about You: * to the extent specifically required by law; and * to the extent we are required to supply the information provided to Our financial institution to initiate the drawing of Your Account. 7. Disputes If You believe that there has been an error in debiting Your Account, You should notify Us directly and confirm that notice in writing with Us as soon as possible so that We can address Your query quickly. If You do not receive a satisfactory response from Us to your dispute, contact Your Financial Institution who will respond to You with an answer to your claim: – within 5 business days (for claims lodged within 12 months of the disputed drawing); or – within 30 business days (for claims lodged more than 12 months after the disputed drawing). If We conclude as a result of Our investigations that Your Account has been incorrectly debited We will respond to Your query by arranging for Your Financial Institution to adjust Your account (including interest and charges) accordingly. We will also notify You in writing of the amount by which Your Account has been adjusted. If We conclude as a result of Our investigations that Your Account has not been incorrectly debited We will respond to Your query by providing You with reasons and any evidence for this finding in writing. 8. Your obligations It is your responsibility to ensure that: Your Account can accept direct debits (Your Financial Institution can confirm this); the account details which You have provided to Us are correct by checking them against a recent account statement; that on the Debit Day there are sufficient cleared funds in Your Account to make the Debit Payment; and that You advise Us if the Your Account has been transferred or closed. If your drawing is returned or dishonoured by Your Financial Institution (whether due to there being insufficient clear funds in Your Account to meet a Debit Payment or otherwise): You may be charged a fee and/or interest by Your Financial Institution; You may also incur fees or charges imposed or incurred by Us; and You must arrange for the Debit Payment to be made by another method or arrange for sufficient clear funds to be in Your Account by an agreed time so that We can process the Debit Payment. You should check Your account statement to verify that the amounts debited from Your Account are correct. If We are liable to pay goods and services tax (“GST”) on a supply made in connection with this Agreement, then You agree to pay Us on demand an amount equal to the consideration payable for the supply multiplied by the prevailing GST rate. 9. Notice If You wish to notify Us in writing about anything relating to this Agreement, You should write to Your Account Manager. We will notify You by sending a notice via ordinary post to the address You have given Us in the Application Form attached to the PDS. Any notice will be deemed to have been received on the third banking day after posting. Execution by You of the Direct Debit Request deems You to have read and understood the terms of this Direct Debit Request Service Agreement. 61 Managing your Investment Who can invest? Processing applications and issue of Units The offer of Units under this PDS is available to both retail and wholesale clients as those terms are defined under the Corporations Act. The Registrar will accept and process applications for the Issuer. The acceptance of applications will however be at the Issuer’s discretion. The Issuer is under no obligation to provide any reasons for the rejection of an application. Please note that we can accept applications submitted only within Australia. Minimum Investment and minimum Buy-Back amounts The Minimum Investment is 2,500 Units per Series. The minimum amount for which you can request a Buy-Back is 1,000 Units per Series. Buy-Back is only available on Buy-Back Dates specified in this PDS. How to invest Complete an Application Form and Identification Form (if required) and forward them together with your Investment Amount as instructed on the Application Form. You can elect to have your funds direct debited on the Issue Closing Date. Identification Forms You will only need to complete an Identification Form if you are not investing through an advisor. As part of the Issuer’s and the Registrar’s obligations to comply with anti-money laundering legislation, we need to adequately identify you by collecting certain details. If you are investing through an advisor they will complete the “Know Your Client” section of the Application Form which fulfils this requirement. If you do not provide us with the required information we may refuse your application. We are not liable for any resulting loss. Depending on what type of investor you are (for example, an individual, company, trustee or otherwise) there is a different Identification Form you will need to complete. To obtain the Identification Form, please visit our website: www.instreet.com.au If required, please complete an Identification Form that matches with the type of investor you are, and post it with the Application Form to the Registrar. 62 Instreet Investment Units will be issued within one month upon receipt of cleared funds of the Total Investment Amount specified in the Application from an investor. The Unit’s economic exposure to the S&P ASX 200 Index, the Reference Index, will begin on the Commencement Date. If a Unit is issued prior to the Commencement Date it will have no economic exposure until the Commencement Date. If for any reason the exposure to the Reference Index or the minimum Barrier Level cannot be achieved on the Commencement Date investors will be refunded their Total Investment Amount without interest. Once your application to invest in the Units is accepted, and Units are issued to you, you will receive a confirmation detailing the particulars of your investment. We will confirm all subsequent transactions you make regarding your Units. Cooling off No cooling off-rights apply in respect of an investment in the Units. Transfer of Units Investors may request a transfer of their Units which may or may not be accepted by the Issuer at its absolute discretion. You should contact us for the relevant transfer form. There should be no stamp duty payable in respect of dealings in Units. Please refer to Section 8 “Taxation” for further comments. How to complete the Application Form 1. Complete the information required in the Application Form. Please read Section 1 below for further instructions. 2. If required, please provide the identification and verification documents listed in Section 2 below. You are not required to provide these documents if you are investing through an advisor. These documents are required under new the Anti-Money Laundering & Counter-Terrorism Financing legislative regime in Australia. Section B: Account Contact Details If you wish to provide alternative contact details for your account to those provided in Section A, please insert your preferred contact details in this section. If you do not complete this section, Instreet Structured Investment Pty Ltd will contact you using the details provided in Section A. In the case of joint investors, Instreet Structured Investment Pty Ltd will use the details of Investor 1 unless you complete this section. Section C: Investment Details Your Application Form, Direct Debit Request (if applicable), your payment as set out in Section C of the Application Form and certified copies of any documents required to verify your identity should be sent to: Insert the number of units you wish to purchase and the Total Investment Amount payable. The number of units must be a minimum of 2,500 units. The Issue Price per Unit is $.86 for Series I and $1.06 for Series II. Instreet Structured Investment Pty Ltd C/O Link Market Services Limited (ABN 54 083 214 537) PO BOX 20043 World Square, NSW, 2002 To calculate the total amount you must pay, multiply the Issue Price, less any rebate of the Advisor Fee per Unit by the number of Units to be purchased. If you are purchasing more than one Series, please add the investment amount for all Series to determine the total amount you must pay. Please note that any rebate of the Advisor Fee reduces the total amount you must pay and is negotiated with your advisor. Re: Application for Instreet Link DPA Section 1: Guide to Completing the Application Form Please complete all relevant sections of the Application Form in BLOCK LETTERS, using black or blue ink. The instructions are cross-referenced to each section of the form. he financial products to which this Application Form T relates are the Units. Further details about the Units are contained in this PDS issued by Instreet Structured Investment Pty Ltd as the Issuer of the Units. hile the PDS is current, Instreet Structured Investment W Pty Ltd will send you paper copies of the PDS, any supplementary document and the Application Form, free of charge on request. The Australian Securities and Investment Commission require that a person who provides access to an electronic application form must provide access, by the same means and at the same time, to the relevant PDS (including any supplementary document). This Application Form is included in the PDS. The PDS contains important information about investing in the Units. You should read the PDS before applying for the Units. Section A: Investor Details Please indicate the type of investor you are. The Application Form states which sections need to be completed depending on what type of investor you are. Section A1: Individual Investor Details Write the full name you wish to appear on the Register of the Units. This must be your own name. Up to two joint applicants may register. This section is for individual, joint or sole trader applicants, at least one partner of a partnership applicant and all individuals acting as trustee and corporate directors. This section also relates to payment details. Please specify whether you will pay by direct debit or cheque. Cheques must be drawn on an Australian bank and must be made payable to “Instreet Structured Investment Pty Ltd Link DPA” and crossed “Not Negotiable”. Attach (do not staple) your cheque to the Application Form with a paper clip. If none of these payment methods are available to you, please contact Instreet Structured Investment Pty Ltd to discuss an alternative. Please note that direct debits may be made any time between when you lodge this Application Form and the Commencement Date. You should ensure that the account you nominate for a direct debit has adequate funds during this time to avoid any dishonor fees. Section D: Bank Account Details You must provide your bank account details in this section (even if you have selected cheque as your payment method in Section C). Any payments of cash in respect of an Early Maturity or Issuer Buy Back will be paid directly into the bank account specified in this section. The bank account must be in the same name as the Applicant(s). The bank account must be held with banks, building societies and credit unions within Australia. Please ensure that you complete all details of the institution in full. Third-party bank accounts will not be accepted. Section E: Operating Authority You must indicate in this section how you would like your account to be operated. In the case of joint accounts, you may request joint signatures or allow either signatory to sign. For a company or trustee, please indicate your operation instructions by ticking the appropriate box. 63 How to complete the Application Form Continued Section F: Privacy Execution Page Please tick the box if you do not wish to be contacted by Instreet Structured Investment Pty Ltd in relation to future investment opportunities. The Execution Page forms part of the Application Form and the Direct Debit Request. You must sign this section of the Application Form and Direct Debit Request. Section G: Providing Identification By signing the Execution Page you are agreeing to the declarations set out in Section H and the terms and conditions of the Direct Debit Request and Direct Debit Request Service Agreement. If you are not investing through an advisor, you must provide certified copies of the required identification documents. These documents are identified in Section 2 below. Section H: Declaration You must read these declarations carefully. By signing the Execution Page you are agreeing to the declarations set out in this section. Direct Debit Request You only need to complete the Direct Debit Request if you selected direct debit as your payment method in Section C. You should ensure that you have read the attached PDS in full before signing the Execution Page. Joint applications must be signed by all persons. If the application is being signed under Power of Attorney please enclose a certified copy of the Power of Attorney and appropriate photo identification of the attorney. Adviser use only: This section of the Application Form will be completed by your advisor. Adviser and office use only: This section of the Application Form will be completed by your advisor. Examples of Correct Names and Account Designations Type of investor Correct name Incorrect name Signature(s) required Individual/joint holding Use full name of each applicant, not initials Luke John Smith Susan Mary Smith Luke J Smith Susan M Smith Each applicant Company holding Use full company name ZYX Pty Ltd ZYX inc ZYX Co ZYX p/l 2 directors OR a director & secretary OR a single director (if a sole director company) Minors Use full name of each applicant, not initials. Use minor name as beneficiary. Susan Mary Smith a/c designation <Josh Smith> Josh Smith Each Applicant (not minor) Superannuation funds/trusts – individual trustee(s). Use trustee(s) personal name(s). Use fund/trust name as beneficiary. Susan Mary Smith a/c designation <Susan Smith Trust> S M Smith Trust Each Trustee <Susan Smith Super Fund> S M Smith Super Fund Superannuation funds/trusts – corporate trustee Use trustee company name. Use fund/trust name as beneficiary. ZYX Pty Ltd <ZYX Trust> <ZYX Super Fund> ZYX Trust 64 Instreet Investment ZYX Super Fund Trustee – per company holding above Lodging the application Please mail the completed Application Form, Direct Debit Request (if applicable), along with the documents to certify your identity to: C/O Link Market Services Limited (ABN 54 083 214 537) PO BOX 20043 World Square, NSW, 2002 Re: Application for Instreet Link DS DPA OR in person at C/O Link Market Services Limited Level 12, 680 George Street Sydney, NSW, 2000 Re: Application for Instreet Link DPA Please ensure payment is made in full. Units will only be issued on receipt of a properly completed Application Form issued together with the PDS dated 22 April 2010 and cleared funds. Please ensure you sign the Execution Page. If you have any queries, please call your financial adviser, or contact Instreet Investment Limited at: Internet: www.instreet.com.au Email: info@instreet.com.au Telephone: 1300 954 678 Section 2: Anti-Money Laundering and CounterTerrorism Financing Act 2006 Please note that this section is relevant only if you are investing directly and not through an advisor. This section sets out the documents that you must attach to your Application Form. These documents must be certified copies. Identification and Verification Requirements Under the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) legislative regime, certain due diligence must be conducted on any prospective investor before Units may be issued to that Investor. The due diligence includes identifying and verifying the identity of a prospective investor. Applications made without providing this information cannot be processed until all the necessary information has been provided. There are also ongoing customer due diligence obligations under the AML/CTF legislative regime which may require the Issuer to collect further information. The Issuer is obliged under the AML/CTF legislative regime to take and maintain copies of any information collected from you. The Issuer may be required to share collected information with the Australian Transaction Reports and Analysis Centre (AUSTRAC) and may be prohibited from informing you of such disclosures. The Issuer may share collected information with related entities. Under the AML/CTF legislative regime, the Issuer has an obligation to report suspicious matters to AUSTRAC. This obligation may require the collection of further information from Investors. The Issuer may be prohibited from informing Investors that reporting to AUSTRAC has taken place. The Issuer has the right not to accept Buy-Back requests or transfers or pay benefits under this product where there are reasonable grounds to believe doing so would breach Australian law or sanctions (or the law or sanctions of any other country) and the Issuer is not liable for any resulting loss. By applying for Units, you are acknowledging that the Issuer may, at its absolute discretion, not issue Units to you, cancel any Units previously issued to you, delay, block or freeze any transactions or redeem any Units issued to you if it believes it necessary to comply with the AML/CTF legislative regime. In the above circumstances, the Issuer will not be liable to you for any resulting loss. 2.1 Requirements for Individuals / Sole Traders If you are an individual Investor or sole trader, you will need to give us certified copies of one document from column [1] OR one document from each of column [2] AND [3]: Please note: for Companies, Trusts, Partnerships, Associations and Co-Operative applicants, please visit the website at www.instreet.com.au in addition to referring to Section 2.2 below for details of the information the Issuer must collect and verify in reference to your application. If you are required to complete the individual section of the Application Form in addition to other sections, then you must provide the documents required for an individual applicant in addition to any others required. 65 How to complete the Application Form Continued Reliable and Independent Verification Documentation DO NOT SEND ORIGINALS: CERTIFIED COPIES ONLY Column [1] Primary Photographic (one proof required) Column [2] Primary Non-Photographic (one proof required) Column [3] Secondary Identification (one proof required) Current photographic Australian driver’s licence Birth certificate Commonwealth, State and Territory financial benefits notice (less than 12 months old) Commonwealth citizenship certificate Current Australian passport# Current State or Territory photographic ID card Centrelink Pension card Current foreign passport# Current ID card issued by a foreign government containing a photograph & signature* ATO Tax notice (less than 12 months old) Health card issued by Centrelink OR Foreign citizenship certificate or birth certificate* AND Current foreign driver’s licence with photograph & date of birth* Local government body or utility provider notice (less than 3 months old) recording provision of services to the person at the address Notice issued within the last 3 months by school principal for a person under 18, recording period of time person attended school and person’s residential address # A passport that expired within the two years prior to submitting the application form will also be accepted. * Documents that are written in a language that is not English must be accompanied by an English translation prepared by an accredited translator. There is a wide range of persons who may certify your documents. A list is given below: ^Who may certify your documents as being a true and correct copy of the original Legal Practitioner enrolled on the roll of the Supreme Court of a State or Territory, or the High Court of Australia An agent of the Australian Postal Corporation A Judge of a court Australian Consular Officer or Diplomatic Officer CEO of a Commonwealth Court Registrar or deputy registrar of a court Justice of the Peace Permanent employee of a post office* Financial institution officer/employee of a bank* A finance company officer Officer of or authorised representative of a holder of an Australian financial services licence* A member of the Institute of Chartered Accountants in Australia, CPA or NIA membership* Notary public Police Officer * Those persons marked with an asterisk * are required to have two or more years of continuous service or membership. The eligible certifier must include the following information: The certified copy must include the statement, “I certify this is a true copy of the original document”. Their full name For photographic documents, the certified copy must include the statement, “I certify this is a true copy of the original document and the photograph is a true likeness”. Address Telephone number The date of certifying Capacity in which they are eligible to certify, and An official stamp/seal, if applicable 66 Instreet Investment 2.2 Non-individual investors Different identification and verification requirements apply to prospective investors who are not individuals, such as companies, other bodies corporate, trusts; including superannuation trusts, partnerships, associations and registered co-operatives. Where applicable, you will need to give us: Australian Companies – Any one of the following documents: a certified copy of the certification of registration or licence or other records of the relevant commonwealth, state or territory statutory regulator or a public document issued by the relevant company. Foreign Companies – a certified copy of the certification of registration or licence or other records held by ASIC (if registered in Australia), registration document issued by the foreign registration body or Disclosure Certificate, or a public document issued by the company. Trusts & Trustees – If the trust is a: Registered managed investment scheme, regulated trust or government superannuation fund, any one of the following documents: a certified copy or certified extract from the relevant regulator’s website showing the full name of the trust, and that the trust is a registered scheme, regulated trust or government superannuation fund. Partnerships, Associations, and Registered Cooperatives – a certified copy (or certified extract) of the partnership agreement or Australian Partnership Taxation Return or Australian State or Territory Business Names Search or Minutes of a partnership meeting or Disclosure Certificate; a certified copy (or certified extract) of the Rules or constitution of the association or minutes of meeting of the association or search of databases of ASIC or State, Territory or overseas body responsible for the incorporation of the association or reliable and independent documents relating to the association or reliable and independent electronic data relating to the association; a certified copy (or certified extract) of the Register maintained by the cooperative or minutes of meeting of the co-operative or search of databases of ASIC or State, Territory or overseas body responsible for the registration of the cooperative or reliable and independent documents relating to the trust or reliable and independent electronic data relating to the co-operative. Important: If you need further information, you may visit the website at www.instreet.com.au to obtain details of the Issuer’s identification and verification requirements as an AML/CTF Reporting Entity for each type of applicant. Other trust type – any one of the following documents: a certified copy or certified extract of the Trust Deed showing the name of the trust, reliable and independent documents relating to the trust or reliable and independent electronic data relating to the trust. This may include the following: – A letter from a solicitor or qualified accountant that confirms the name of the trust; – A notice issued by the Australian Tax Office within the last 12 months in relation to the trust Individual Trustee; – Australian Company Trustee – A certified copy of the certification of registration. – Australian Listed Company or majority owned subsidiary of an Australian Listed Company or is a regulated company – A certified copy of a public document issued by the relevant company. – Foreign Company Trustee – a copy or extract of the Trust Deed; reliable and independent documents relating to the trust or reliable and independent electronic data relating to the trust. 67 How to complete the Issuer Buy-Back Form General Please use CAPITAL LETTERS and a black ball point when completing the form. Section A: Investor Details Please insert your account number. Contact Instreet at info@instreet.com.au if you do not know your account number. Section B: Details of the Units to be Sold Please complete this section by indicating in the first column the PDS under which you acquired your Units. The name and date of the PDS can be found on the front cover of the PDS. Please indicate in the second column the Series of Units in relation to which you are requesting an Issuer Buy-Back. Indicate the number of Units to be sold in the third column. There are a number of rows so that you can use one Issuer Buy-Back Form to request Issuer Buy-Back in relation to Units from a number of different Series. Section C: Signature(s) Joint applications must be signed by all persons. If the Buy-Back Request Form is being signed under Power of Attorney, please enclose a certified copy of the Power of Attorney and appropriate photo identification of the attorney. Lodging the Buy-Back Request Form Please mail the completed form to: Instreet Structured Investment Pty Ltd C/O Link Market Services Limited PO BOX 20043 World Square NSW 2002 Re: Buy-Back for Instreet Link DS Series I and/or II DPA Requests will only be processed on receipt of a properly completed Buy-Back Request Form. If you have any queries, please call your financial adviser or contact Instreet Investment Limited at: Internet: www.instreet.com.au Email: info@instreet.com.au Telephone: 1300 954 678 68 Instreet Investment Instreet Link DS Series I & II – S&P ASX 200 Index Linked Deferred Purchase Agreements Application Form This is an Application Form for Units in the Instreet Link DS Series I & II - S&P ASX 200 Index Linked Deferred Purchase Agreements issued by Instreet Structured Investment Pty Limited ABN 82 140 407 558 (Issuer) and arranged by Instreet Investment Limited ABN 44 128 813 016 as authorised representative under AFSL 246801. This Application Form accompanies the PDS dated 22 April 2010 and any supplementary PDS issued for the Units. It is important that you read the PDS in full and the acknowledgements contained in this Application Form before applying for the Units. The Issuer will provide you with a copy of the PDS including any supplemental PDS and the Application Form, on request without charge. A person who gives another person access to the Application Form must at the same time and by the same means give the other person access to the PDS including any supplemental PDS. Please see the instructions on how to complete this Application Form in the PDS. The Minimum Investment in Series I & II is 2,500 units. This Application Form and your initial investment amount must be received by the Registrar by 4:00 pm in order to be processed that day. Units in Series I & II are issued only on receipt of: this Application Form (including the signed Execution Page and (if applicable) the Direct Debit Request), verification of the applicant’s identity (if you are not investing through an advisor, you must attach certified copies of the documents as described in section 2 of “How to complete the Application Form”), payment in full. Potential investors should obtain independent financial and taxation advice as to the suitability of this investment to them having regard to their investment objectives, financial situation and particular needs. Nothing in this PDS is a recommendation by the Issuer or its related bodies corporate concerning investment in the Units or any specific taxation consequences arising from an investment in the Units. SECTION A – INVESTOR DETAILS Wealth Focus Pty Ltd PO Box 760 Manly NSW 1655 Tel: 1300 559869 AFSL: 314872 What type of person or entity is applying? Please tick one box ONLY and complete all the sections indicated. Individual, joint or sole trader – must complete A1, C, D and E Partnership – must complete A1, A4, C, D and E Australian Company – must complete A1 (Directors), A2, C, D and E Trust / Super Fund with Individuals as Trustee – must complete A1 (Trustees), A3, C, D and E Trust / Super Fund with Corporate Trustee – must complete A1 (Directors), A2 (Company), A3, C, D and E Others: If you elect direct debit as your payment method in Section C, you must also complete the Direct Debit Request attached to this Application Form. For other entities, including foreign companies, please contact us for an appropriate Application Form. Please note that if you do not complete the relevant parts of section A and G (including attaching the necessary documentation as set out in Section 2 of “How to complete this Application Form”, we may refuse your application. We are not liable for any resulting loss. Please note that you should complete Section B if you wish to provide alternative contact details for your account to those provided in Section A. Please insert your preferred contact details in this section. If you do not complete this section, the Issuer will contact you using the details provided in Section A. In the case of joint investors, the Issuer will use the details of Investor 1 unless you complete this section. You must complete Section G (and attach the necessary documentation as set out in Section 2 of “How to complete the Application Form”) if you are not investing through an advisor. A1 INDIVIDUAL INVESTOR DETAILS (MUST COMPLETE) (including individuals acting as trustee and corporate directors) INVESTOR 1 (Your name MUST match your ID exactly.) Title: Given Names (in full): Surname: Date of Birth (dd/mm/yyyy) Country of Citizenship Are you an Australian resident for tax purposes? No Yes If not, please specify your country of tax residence. Australian Tax File Number OR Exempt from quoting a tax file number Exemption details (if applicable) Residential Address City/Suburb/Town State Postcode Country Email Address Telephone (home) Area code Number Telephone (business hours) Area code Number Mobile Fax Area code Number In the case of joint investors, please note that unless you indicate otherwise in Section B, the Issuer will use these contact details in relation to this application. 69 Page 1 of 9 INVESTOR 2 (Your name MUST match your ID exactly.) Title: Given Names (in full): Surname: Date of Birth (dd/mm/yyyy) Country of Citizenship Are you an Australian resident for tax purposes? No Yes If not, please specify your country of tax residence. Australian Tax File Number OR Exempt from quoting a tax file number Exemption details (if applicable) Residential Address City/Suburb/Town State Postcode Country Email Address Telephone (home) Area code Number Telephone (business hours) Area code Number Mobile Fax Area code Number COMPLETE THIS PART IF INDIVIDUAL IS A SOLE TRADER ABN Full Business Name (if any) Principal Place of Business (if any) (PO Box is NOT acceptable) City/Suburb/Town State Postcode Country Email Address Telephone (home) Area code Number Telephone (business hours) Area code Number Mobile Fax Area code Number A2 AUSTRALIAN CORPORATIONS & CORPORATE TRUSTEES Full name of the company as registered by ASIC ABN Registered Office Address (PO Box is NOT acceptable) City/Suburb/Town State Postcode Country Principal Place of Business (if any) (PO Box is NOT acceptable) City/Suburb/Town State Postcode Main Contact Email Address Telephone (business hours) Area code Number Fax Area code Number Page 2 of 9 Country Company type Public – Each Director must also complete A1 Proprietary – Complete Director details below and each Director must also complete A1 How many directors are there? Each Director’s name in full (in capital letters) Is the company Australian for tax purposes? Yes No If not, please specify your country of tax residence. Australian Tax File Number OR Exempt from quoting a tax file number Exemption details (if applicable) A3 TRUSTS or SUPER FUND DETAILS Country of establishment Name of Trust or Fund ABN Date of establishment (dd/mm/yy) Business name of the Trustee (if any) Note: Individual trustees must complete A1; corporate trustees must complete A2 Type of trust Regulated trust (SMSF) Registered managed investment scheme Unregistered managed investment scheme with only wholesale clients which do not make small-scale offerings under section 1012E of the Corporations Act 2001 Government superannuation fund Others If the ‘others’ box is ticked, please specify (e.g. family, unit, charitable, estate) Are you an Australian for tax purposes? Yes No If not, please specify the Trust or Fund’s country of tax residence. Australian Tax File Number OR Exempt from quoting a tax file number Exemption details (if applicable) NOTE: The Issuer recognises the Trustee(s) only as the investor and not the beneficiary, therefore the trustee(s) details must be given above. However the Issuer is also required to record the individual beneficiary details or, if the terms of the trust identify the beneficiaries by reference to class, the details of the class. Details of the beneficiaries do not need to be completed by SMSFs. Page 3 of 9 BENEFICIARY 1 Name ABN (if applicable) BENEFICIARY 2 Name ABN (if applicable) BENEFICIARY 3 Name ABN (if applicable) BENEFICIARY 4 Name ABN (if applicable) Class Details of Beneficiaries A4 PARTNERSHIPS Full Name of the Partnership Full business name of Partnership registered in any State or Territory (if applicable) Business of Partnership Country of Establishment Date of Establishment Australian Tax File Number of partnership OR Exempt from quoting a tax file number Exemption details (if applicable) How many Partners are there? Each Partner’s details (in Capitals) Full Name Full Residential Address Partnership Share NB: One Partner MUST complete A1. SECTION B – ACCOUNT CONTACT DETAILS (Complete only if you wish to provide alternate contact details to those provided in Section A). Please complete the following if contact details are different from those provided in Section A. In the case of joint investors, please note that unless you indicate otherwise in this section, the Issuer will use the contact details provided in Section A1 for Investor 1 in relation to this application. We will not accept your financial adviser’s address. Account Designation (optional) Main Contact Postal Address City/Suburb/Town State Postcode Email Address Telephone (home) Area code Number Telephone (business hours) Area code Number Mobile Fax Area code Number Page 4 of 9 Country SECTION C – INVESTMENT DETAILS (MUST COMPLETE) Details of the Units to be purchased: Issue Price per Unit Number to be Purchased (minimum of 2,500 units) Rebate (1.1%) Example A$0.86 5,000 1.1% Total Investment Amount Payable [$A0.86 – (1.1% x 10)] x 5,000 = A$3,750 Series I A$0.86 [$A0.86 – ( % x 10)] x = A$ Series II A$1.06 [$A1.06 – ( % x 10)] x = A$ For Australian Investors: Please tick the box below to advise how your payment will be made. Direct Debit Please complete the Bank Account Details in Section D and the Direct Debit Request. A Direct Debit Dishonour Fee will apply if sufficient funds are not available in your nominated account. Cheque Please make cheque payable to: “Instreet Structured Investment Pty Ltd Link DPA”. You must also complete the Bank Account Details in Section D. SECTION D – BANK ACCOUNT DETAILS (Must complete even if you have selected Cheque) All investors must complete this section by providing details of an Australian banking institution for Issuer Buy-Backs. The nominated bank account must be in the name of the Applicant. Bank Name/Institution Branch name and address City/Suburb/Town State Postcode BSB Country Account Number Account Name SECTION E – OPERATING AUTHORITY (MUST COMPLETE) When giving instructions to us about your investment, please indicate who has authority to operate your account: INDIVIDUAL/JOINT ACCOUNTS (If no box is ticked, we will assume that both must sign.) anyone can sign both must sign COMPANY, TRUST, SUPER FUND ACCOUNTS (If no box is ticked, all future written instructions must be signed by two directors/trustees, director and secretary, or the sole director) anyone can sign any two can sign all must sign OTHERS SECTION F – PRIVACY The Issuer may wish to contact you about future investment opportunities that may be of interest. Please tick the box if you do NOT wish to be contacted for this purpose. I/We do not wish to receive information from the Issuer regarding future investment opportunities SECTION G – PROVIDING IDENTIFICATION Please note that you are only required to attach proof of identification if you are not investing through an advisor. Refer to Section 2 of “How to complete the Application Form” for details of the required documentation. I/We confirm I/we have ATTACHED CERTIFIED COPIES of the required proof of identification with this application form for each investor/applicant. An Authorised Representative of an AFSL holder can certify the copies required for identification. The advisor should include his/her Signature, Name AFSL and Date. Page 5 of 9 SECTION H – DECLARATIONS YOU SHOULD READ THE PDS IN FULL BEFORE MAKING THESE DECLARATIONS AND SIGNING THE EXECUTION PAGE AT THE END OF THIS APPLICATION FORM. By completing the application form you: 1. 19. declare that if investing as a trustee of a trust (Trust) (including acting as trustee for a superannuation fund), you are familiar with the documents constituting the trust (the Trust Documents) (and as amended, if applicable) purporting to establish, and relating to, the Trust and hereby declare and confirm that: declare that you have read and fully understood this PDS. 2. declare that you have read and understood Section 10 “Terms of the Deferred Purchase Agreement”. 3. agree to the collection, use and disclosure of your personal information provided in the application form. (a) the Trust and the Trust Documents have been validly constituted and is subsisting at the date of this declaration; 4. declare that you have received this PDS personally, or a printout of it, accompanied by or attached to the application form before signing the form. (b) you will and are empowered and authorised by the terms of the Trust Documents examined by you to enter into and bind the Trust to the transactions completed by the Terms and this PDS; 5. declare that all information provided in the Application Form or any other information provided in support of the application is true and correct. (c) the transactions completed by the Terms and this PDS do or will benefit the beneficiaries of the Trust; and 6. declare if you have received the PDS from the internet or other electronic means, that it was received either personally or a printout accompanied the application form before making an application for Units. (d) you have all the power, authority and discretion vested as trustee to apply for and hold the Units. 7. acknowledge that none of Issuer or any member of their respective groups or any of their directors or associates or any other entity guarantees the performance of or the repayment of capital invested in, or income from the Units. 8. declare that if the Execution Page of this Application Form is signed under power of attorney, you have no knowledge of the revocation of that power of attorney. 9. declare that you have the power to make an investment in accordance with the application. 20. agree to give further information or personal details to the issuer if it reasonably believes that it is required to meet its obligations under anti-money laundering counterterrorism or taxation legislation. By making this application, you represent and covenant that the funds you are investing are not the proceeds of crime or money laundering, nor connected with the financing of terrorism. You agree that the Issuer may in its absolute discretion determine not to issue units to you, may cancel any units that have been issued to you or may redeem any units issued to you if the Issuer believes that such action is necessary or desirable in light of its obligations under the Commonwealth Anti-Money Laundering and Counter-Terrorism Financing Act 2006 or any related legislation. 21. irrevocably appoint for valuable consideration the Issuer its related bodies corporate and each of their respective employees whose title includes the word “director” jointly, and each of them severally as my/our true and lawful agent to do: 10. declare that you have read and understood the Direct Debit Request Service Agreement contained in Appendix A. 11. confirm and make the declarations set out in the Direct Debit Request. (a) everything necessary or expedient to bind you to the Terms, fill in any blanks in the Terms and date and execute the Terms on your behalf; 14. agree to be bound by the provisions of the terms and conditions of the Units set out in the PDS, specifically those contained in Section 10 ”Terms of the Deferred Purchase Agreement”, and as amended from time to time. (b) anything which you must do under or in relation to the Terms or any other agreement or arrangement between you and the Issuer relating to the Units (including arranging physical delivery of the Delivery Assets or acting in accordance with the Agency Sale Option); and (c) anything incidental or necessary in relation to the above (including, but not limited to, filling in any blanks in this Application Form and appointing any person as sub-agent to do any of the above). 15. acknowledge that this PDS does not constitute an offer in any jurisdiction in which, or to any person of whom, it would be unlawful to make the offer. 22. indemnify the agent against all claims, losses, damages and expenses suffered or incurred as a result of anything done in accordance with the above agency appointment. 16. declare that if investing as a trustee on behalf of a superannuation fund or trust you are acting in accordance with your designated powers and authority under the trust deed. In the case of superannuation funds, you also confirm that the funds are complying funds under the Superannuation Industry (Supervision) Act. 23. acknowledge that all information relating to this Application Form for investment or any subsequent information relating to this investment may be disclosed to any service provider and to your adviser. This authority will continue unless revoked in writing by you. 12. declare that sole signatories signing on behalf of a company are signing as sole director or as a sole director/secretary of the company. 13. acknowledge that an investment in the Units is subject to risks including possible delays in repayment and possible loss of entire capital invested. 17. acknowledge that there is a Charge over the Hedge (described in Section 9 “Additional Information” of the PDS) and you are entitled to the benefit of the Charge, bound by the terms of the Charge and must perform all of the obligations and comply with all restrictions and limitations applicable to you under the Charge. You also acknowledge that the benefit of the Charge is held by the Security Trustee on trust for you in accordance with the Security Trust Deed (described in Section 9 “Additional Information” of the PDS). 24. If you use the facsimile or email facility you: (a) release, discharge and agree to indemnify the Issuer and their agents, including the registrar and their respective officers from and against all losses, liabilities, actions, proceedings, accounts, claims and demands arising from instructions received under the facility. (b) agree that a payment made in accordance with the conditions of the facility shall be in complete satisfaction of all obligations to you for a payment, notwithstanding it was requested, made or received without your knowledge or authority. 18. agree and acknowledge that their recourse against the Issuer is limited to the Secured Property only and otherwise they can take no action against the Issuer. Page 6 of 9 SECTION I – DIRECT DEBIT REQUEST (Complete only if paying by Direct Debit) This Direct Debit Request includes this page and the next page entitled “Execution Page”. Important Note: Bank account name(s) must match the Applicant name(s) in the Application Form attached to the Product Disclosure Statement (PDS) dated 22 April 2010 for Link DS Series I & II and be signed by that person(s). In the case of joint accounts, both signatures are required. If a company or corporate trust is applying, this form must be signed by either the sole director (if there is only one) OR two directors or a director and secretary (if there are two or more). Request and authority to debit I/We: Surname or Company Name Given name or ACN / ABN Postal Address Surname or Company Name Given name or ACN / ABN Postal Address request and authorise Instreet Structured Investment Pty Limited (ABN 82 140 407 558) Debit User ID:390822 to arrange, through its own financial institution, for any amount that Instreet Structured Investment Pty Limited may properly charge me/us to be debited from my/our nominated account via the Bulk Electronic Clearing System at the financial institution shown below and paid to Instreet Structured Investment Pty Limited, subject to the terms and conditions of the Direct Debit Request Service Agreement in Appendix A of the PDS. The Investment Amount may be deducted at any time from when you lodge this Application Form and the Commencement Date. You should ensure that sufficient funds are in the nominated account during that time to prevent any dishonour fees. Account details Name of Account Note: The account name must match the name(s) given in the Application Form contained in the PDS. Name and Branch of Financial Institution BSB No. Account Number SECTION J – EXECUTION PAGE This execution page forms part of the Application Form and the Direct Debit Request. Acknowledgments I/We understand and acknowledge that by signing below: I/we have read and understood, and agree to, the terms and conditions governing the direct debit arrangements between me/us and Instreet Structured Investment Pty Limited as set out in this Direct Debit Request and in the Direct Debit Request Service Agreement in Appendix A of the PDS; and I/we make the declarations set out in Section H of this Application Form. Signatures Signature of Unitholder 1 Name of Unitholder 1 Date Address of Unitholder 1 City/Suburb/Town Tick capacity – mandatory for companies State Postcode Sole Director Director Country Secretary Signature of Unitholder 2 Name of Unitholder 2 Date Address of Unitholder 2 City/Suburb/Town Tick capacity – mandatory for companies State Postcode Sole Director Director Country Secretary Page 7 of 9 ADVISER USE ONLY Adviser Name (in full) Adviser Postal Address City/Suburb/Town State Postcode Country Adviser Phone (business hours) Adviser Email Adviser Stamp Wealth Focus Pty Ltd PO Box 760 Manly NSW 1655 Tel: 1300 559869 AFSL: 314872 Dealer Group name Dealer Group branch (Suburb, State) Dealer Postal Address City/Suburb/Town State Postcode Dealer Phone (business hours) Dealer Group Email AFS Licence ABN Page 8 of 9 Country ADVISER AND OFFICE USE ONLY Know Your Client - Investor Application Signoff by your Adviser This form is to be completed by all advisers and returned to the Issuer together with the completed Application Form, Direct Debit Request (if applicable) and required attachments. 1. I confirm the following: (i) The Application Form is completed; (ii) The Direct Debit Request is completed (if applicable); (iii) The Execution Page is completed and signed; and (iv) For trustee applicants (that are not SMSFs), I have received, reviewed and will retain a certified copy of the dated and stamped Trust Deed together with any amendments, or other document evidencing the terms of the trust. I confirm that under the Trust Deed, the trustee is authorised to enter into and bind the trust to the transactions completed by the Terms and the PDS, including the application for and holding of the Units. 2. I confirm: That in accordance with the requirements of the AML/CTF Act: (a) The applicant’s identity has been verified; (b) The methods and procedures used in relation to the verification and identification of the client have been carried out in accordance with AML/CTF Legislation and Regulations; (c) If requested, the verification and identity record, made in accordance with section 112(2) of the AML/CTF Act will be made available to the Issuer; and (d) Details of identity document(s) found such as the document number are noted below. Applicant 1 Title: Given Names (in full): Surname: Document Number Type of Document Expiry Date Applicant 2 Title: Given Names (in full): Surname: Document Number Type of Document Expiry Date Signature Date Title: Given Names (in full): Surname: Job Title Organisation Page 9 of 9 Instreet Link DS Issuer Buy-Back Form This is an Issuer Buy-Back Form for Units in the Instreet Link identified below in Section B issued by Instreet Structured Investment Pty Ltd ACN 140 407 558 and arranged by Instreet Investment Instreet Investment Limited ABN 44 128 813 016 as authorised representative under AFSL 246801. This Issuer Buy-Back Form accompanies the Product Disclosure Statement for the Units in the Series identified below in Section B and any supplementary PDS issued for those Units (PDS) This form is to be used if you are an investor in the Units and wish to request an Issuer Buy-Back prior to Maturity. Please see the instructions on how to complete this Form in the PDS. This Issuer Buy-Back Form must be received by the Registrar by 2:00 pm in order to be processed that day. SECTION A – INVESTOR DETAILS I/We hereby apply for the Units issued by Instreet Structured Investment Pty Limited and identified in Section B below to be transferred from me/us to the Issuer. Name of Seller (if a company, please provide full name and ABN/ACN/ARBN): Investor account number (Please contact Instreet on info@instreet.com.au if you do not know your account number) Address City/Suburb/Town State Postcode Country Telephone SECTION B – DETAILS OF THE UNITS TO BE SOLD Investment Series** Name and Date of PDS* Series I & II – S&P ASX 200 Index Linked Deferred Purchase Agreements PDS Dated 22 April 2010 Number of Units to be sold (this must be greater than or equal to the Minimum Buy-Back Amount.) Series I 1,000 Units * As set out on the cover of the PDS **This Issuer Buy-Back Form can be used to request an Issuer Buy-Back in relation to Units in a number of Link DS Series. SECTION C – DECLARATIONS & SIGNATURES I/We the registered unitholder(s) request the Issuer Buy-Back the Units specified above, subject to the conditions contained in the PDS on which I/we held those Units at the time of signing of this form. I/We have full legal power to request this Issuer Buy-Back and do so free of any encumbrance or security (whether registered or not). Dated Signature of Unitholder 1 Name of Unitholder 1 Tick capacity – mandatory for companies Date Sole Director Director Secretary Signature of Unitholder 2 Name of Unitholder 2 Tick capacity – mandatory for companies Date Sole Director Director Secretary 79 Page 1 of 1 Contact Details Issuer: Instreet Structured Investment Pty Ltd Po Box R380 Royal Exchange NSW 1225 Level 34, 50 Bridge Street, SYDNEY NSW 2000 Tel: +61 2 8216 0804 Arranger: Instreet Investment Limited PO Box R380 Royal Exchange NSW 1225 Email: info@instreet.com.au Tel: 1300 954 678 Fax: 02 8216 0701 Registrar: Link Market Services Limited ABN 54 083 214 537 Level 12, 680 George Street Sydney NSW 2000 Tel: (02) 8280 7100 Fax: (02) 9261 8489 Issuer’s Solicitors: Baker & McKenzie Level 27 AMP Centre 50 Bridge Street Sydney NSW 2000 Security Trustee: AET Structured Finance Services Pty Ltd Level 22 207 Kent Street Sydney NSW 2000 INstreet INvestments Limited can be contacted at Level 34, 50 Bridge Street, Sydney NSW 2000 Australia, by telephone +61 2 8216 0804 and email info@instreet.com.au Our web address is www.instreet.com.au and if you need to fax +61 2 8216 0701. 84 Instreet Investment